Northern governors have opposed the recent tax reform bill submitted to the National Assembly by President Bola Ahmed Tinubu’s administration.
This was announced in a communiqué on Monday by Muhammadu Inuwa, the Chairman of the Northern Governors’ Forum and governor of Gombe State.
On October 3, 2024, President Tinubu submitted a tax reform bill to the Senate and House of Representatives for approval.
The bill includes sector reforms, such as renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
The governors are particularly opposed to the proposed shift to a derivative-based model for the distribution of value-added tax (VAT).
They urged the National Assembly to reject the bill.
“The Forum expressed disappointment with the content of the recent Tax Reform Bill submitted to the National Assembly.
“The bill’s provisions are seen as unfavorable to the interests of the north and other sub-national entities, particularly the proposed shift to a derivation-based model for distributing value-added tax (VAT).”
The reason is that companies remit VAT based on the location of their headquarters and tax office, rather than where goods and services are actually used.
“Therefore, the Forum has unanimously opposed the proposed tax amendments and urges members of the National Assembly to reject any bill that could harm the welfare of our people.”
To be clear, the Northern Governors’ Forum fully supports any policies or programs aimed at fostering the country’s growth and development.
“However, the Forum emphasizes the need for equity and fairness in implementing all national policies and programs to ensure that no geopolitical zone is disadvantaged or marginalized,” they stated.
Additionally, the Forum urged Nigerians to remain calm despite the economic challenges facing the nation.
