Northern governors kick against proposed tax reform bill

The Northern Governors Forum (NGF) has opposed the proposed Tax Reform Bill forwarded to the National Assembly.

In a communique read by the chairman of NGF and Governor of Gombe state, Mohammed Yahaya, the governors kicked against the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model.

According to them, the proposed tax bill is not in the interest of the North and other sub-nationals.

“The Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly,” they said.

“The contents of the Blare against the interests of the North and other sub-nationals especially the proposed amendment to the distribution of Value Added Tax (VAT) to a Derivation-based Model.”

The NGF argued that companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.

Yahaya said the Forum unanimously rejects the proposed Tax Amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.

The governors called for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalised.

On October 3, 2024, President Bola Tinubu transmitted four tax reform bills to the National Assembly for consideration.

He sent the bills through a letter addressed to the Speaker of the House, Abbas Tajudeen which was read on the floor of the House during plenary that day.

The bills are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, aimed at providing a legal framework for all taxes in the country and reduce disputes.

The others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.