A group of leaders from the Northern region, under the auspices of the League of Northern Democrats (LND), has charged the Federal Government to address key issues generating tension around the tax reform bills to avoid dangerous economic and political consequences.

The group, which presented its views on the bills to the public in Abuja on Thursday, noted that the country might face deep-seated challenges if those issues were not addressed.

Former Kano State Governor, Ibrahim Shekarau, who led the group, said the issues revolve around equity and burden distribution.

According to him, there are questions about whether the proposed measures ensure fairness in taxation, particularly for small businesses and lower-income groups.

On implementation feasibility, the group highlighted concerns about the capacity of tax authorities to efficiently implement and monitor the new provisions.
Shekarau also hinted at the potential risks of alienating informal sector participants through overly aggressive taxation policies.
On revenue allocation, the group noted concerns regarding whether the reforms adequately address the imbalance in revenue sharing among federal, state, and local governments.

On the risk of over-taxation, it stressed the danger of stifling economic activities by overburdening businesses and investors.

The LND recommended constitutional compliance to align tax administration and Nigeria’s Tax Bills with constitutional provisions, ensuring respect for religious and cultural practices, particularly regarding inheritance taxation.

It suggested that VAT distribution be based on the derivation principle to promote equity and development across regions.

The group also urged support for the informal sector through training, access to finance, and proper address systems to broaden the tax base and enhance compliance.