Northern student coalition urges FG to halt VAT increase, tax reform

The Coalition of Northern Groups (CNG) Students’ Wing in Yobe State, on Tuesday, called on the Federal Government to halt the proposed Value Added Tax (VAT) increase and instead reduce the current rate to 3%.

The coalition unanimously rejected the proposed Tax Reform Bills, citing their lack of inclusivity and potential adverse effects on various regions and sectors.

In a statement signed by the Coordinator of the CNG Students’ Wing, Comrade Adamu Ibrahim Galadima, the coalition underscored that reducing VAT would provide much-needed economic relief and foster business growth, especially in light of the challenges posed by subsidy removal and exchange rate unification.

The appeal was made during a town hall meeting at Federal University, Damaturu, focused on the implications of the Tax Reform Bills on Nigerians, particularly students, theme “Reform Bills: A Catalyst for Economic Growth or a Burden on the People,” the event gathered over 97 youth and student groups.

The coalition called on the federal government to withdraw the bills and adopt a more inclusive and people-centered approach to reforms.

Galadima said: “The Federal Government should halt the proposed VAT increases and instead reduce the current VAT rate to 3%. This reduction will provide relief to citizens and businesses while encouraging economic activity. Alternative revenue-generating strategies must be explored to avoid placing additional financial pressure on ordinary Nigerians.

“The proposed tax reform bill is unanimously rejected due to its lack of inclusivity and potential negative impact on various regions and sectors. The reforms must undergo thorough consultation with all regions and key stakeholders, including civil society organizations, educational institutions, and local governments, to ensure a consensus-driven and equitable approach.

“These recommendations aim to ensure fairness, transparency, and inclusivity in Nigeria’s economic and governance frameworks, while prioritizing the well-being and interests of all citizens, especially those in Northern Nigeria.”

They stressed the need for thorough consultations with stakeholders, including civil society organizations, educational institutions, and local governments, to ensure fairness and equity in the reform process.

The group also urged lawmakers to reject the bills, highlighting that they had been overwhelmingly opposed by constituents.

The coalition condemned any plans to defund or restructure agencies such as the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA), and the National Agency for Science and Engineering Infrastructure (NASENI).

According to the group, these institutions are crucial for advancing education, technology, and industrial development in Nigeria.

The coalition also urged lawmakers to prioritize the interests of their constituents by rejecting the bills and advocating for a fair tax system that promotes national unity and balanced development.