NEC recommends withdrawal of tax reforms bill from NASS

The National Economic Council on Thursday recommended the immediate withdrawal of the Tax Reforms Bill from the National Assembly to allow for wider consultations by stakeholders and consensus.

The Oyo State Governor, Seyi Makinde made the disclosure after the Council rose from its 144th meeting, chaired by Vice President Kashim Shettima, at the Presidential Villa, Abuja.

Makinde explained that members, during the Council’s closed door, agreed that it was vitally important to allow for a wider consultation for consensus building and understanding of the proposed piece of legislation among Nigerians.

According to him, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bill.”

Makinde added that this decision was made for the benefit of the entire country, just as he emphasized the need for further consultations regarding the bill.

“We saw the gap and decided that there is a need for a wider consultation,” he added.

President Bola Tinubu and the Federal Executive Council recently endorsed new policy initiatives to streamline Nigeria’s tax administration processes.

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The Federal Government had said that the new laws are meant to enhance efficiency and eliminate redundancies across the nation’s tax operations.

The reforms emerged after a review of existing tax laws since August 2023. The National Assembly is considering four executive bills containing these tax reform efforts.

NEC’s recommendation came days after the Northern Governors kicked against the reform bill.

At a meeting on October 28, 2024, Governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.

A communiqué read by the Chairman of the forum and Gombe State Governor, Muhammed Yahaya, said the proposition negates the interest of the North and other sub-nationals.