Tax bills: Some states may struggle to survive, says Zamfara governor

Zamfara State Governor Dauda Lawal has said some states may struggle to survive if the tax reform bills before the National Assembly are passed and signed into law.

The new tax bills introduced by the current administration have faced criticisms and opposition from many including the 36 state governors.

Also, the 19 governors in northern Nigeria have rejected sections of the bills.

Speaking on Channels Television’s Politics Today programme on Tuesday, Lawal said it is important to look through the bill carefully.

“Some states may not be able to survive so it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” Lawal said.

“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation so as also to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement,” he said.

Lawal said it would be difficult for many states to pay the N70,000 minimum wage if the tax reforms are implemented.

“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.”

He added that there is a component of the bill that talks about derivation and definitely, and if they go by it, it is going to affect some of the states in terms of revenue generation.

Meanwhile, a coalition of civil society organizations (CSOs) from Northern Nigeria has endorsed the Tax Reforms Bills.

The CSOs, which comprises the Coalition of Northern Civil Society Groups, and Concerned Northern Professionals, endorsed the bills in a communique released after a town hall meeting in Abuja on Tuesday.

After deliberations, the CSOs resolved that the tax reforms would contribute to the development of Northern Nigeria.

However, Northern leaders, including traditional rulers and the Northern Governors Forum, (NGF) have kicked against the tax reform bills, claiming they would impoverish the North.

The tax reform bills include the Nigeria Tax Bill 2024; the Tax Administration Bill; the Nigeria Revenue Service Establishment Bill, meant to repeal the Federal Inland Revenue Service, (FIRS) Act and create the Nigeria Revenue Service, (NRS) and the Joint Revenue Board Establishment Bill.