NEC Calls for Withdrawal of Tax Reform Bill.
The National Economic Council (NEC) has highlighted reservations over President Bola Tinubu’s Tax Reform Bill, which has been forwarded to the National Assembly.
The President sent the measure to NASS based on the report and recommendations of the Presidential Committee on Fiscal and Tax Reforms, which he formed to improve revenue generation in the country.
The NEC unanimously urged for the bill’s removal.
Vice President Kashim Shettima presided over the National Economic Council meeting in the Presidential Villa in Abuja, which resulted in these resolutions.
Following the meeting, the governors briefed State House media, emphasising the importance of stakeholder alignment for the proposed reforms.
Oyo State Governor Seyi Makinde informed journalists, noting that the NEC recognised the need for thorough engagement with stakeholders, especially state governors, to ensure that the law benefits all Nigerians.
“The Chairman of the Presidential Committee delivered a presentation to the NEC today on fiscal policy and tax reform. “Their primary goals are fair taxation, responsible borrowing, and sustainable spending,” he stated.
The Council recognised that the country is underperforming in all metrics, including the yield from main revenue sources and the tax-to-GDP ratio, among others.
Following thorough consideration, the NEC recognised the importance of sufficient alignment between and among stakeholders for the proposed revisions.
“So Council, therefore, recommends the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country and also to give people the vision and where we are moving the country in terms of a tax reform because there’s really a lot of miscommunication and misinformation,” Gov. Makinde said.
Northern Governors Reject Bill.
The move came only days after the important Northern Governors’ Forum rejected some of the ideas, including the VAT-sharing template in one of the legislation.
The northern governors reached this decision following a meeting in Kaduna, where they demanded equity and justice.
Companies remit VAT based on the location of their headquarters and tax office, not where they purchase services and goods. In light of the foregoing, the forum unanimously condemns the proposed tax adjustments and urges members of the National Assembly to oppose any law that threatens the well-being of our people,” said Inuwa Yahaya, the forum’s chairperson.
To be clear, the Northern Governors’ Forum backs policies and programs that promote national growth and development. However, he noted that the forum strives for equity and fairness in the execution of all national policies and initiatives, ensuring that no geopolitical zone is shortchanged or marginalised.
The governors that attended were Uba Sani of Kaduna State, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, Abdullahi Sule of Nasarawa, Babagana Zulum of Borno, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, and Ahmadu Umaru Fintiri of Adamawa. Deputy governors represented the other governors.
Governor Yahaya of Gombe State, while reading the meeting’s communiqué, stated that the tax bills are against the interests of the North and directed northern MPs to reject them.