Governors Demand Withdrawal of Proposed Tax Reform Bill Over Fiscal Concerns

Governors have called for the withdrawal of the proposed tax reform bill, highlighting worries about its financial implications for states. Discover the details and government response.

Governors in Nigeria have voiced concerns about the Tax Reform Bill submitted by President Bola Tinubu to the National Assembly.

The bill was sent to NASS following the report and recommendations of the Presidential Committee on Fiscal and Tax Reforms, established by the President to enhance revenue generation in the country.

The governors collectively urged for the bill to be withdrawn.

This was one of the resolutions made during the National Economic Council meeting at the Presidential Villa in Abuja, chaired by Vice President Kashim Shettima.

After the meeting, while briefing State House Correspondents, the governors emphasized the importance of achieving adequate alignment among all stakeholders for the proposed reforms.

Governor Seyi Makinde of Oyo State informed journalists that the National Economic Council (NEC) observed the necessity for thorough consultations to gather opinions from stakeholders, including state governors, ensuring that the legislation benefits all Nigerians.

“Today, NEC received a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms. The primary focus was on fair taxation, responsible borrowing, and sustainable spending,” he stated.

The Council recognized that the country is underperforming across all metrics, including yield from major revenue sources and the tax-to-GDP ratio.

After careful consideration, NEC recognized the importance of achieving strong alignment among all stakeholders regarding the proposed reforms.

Governor Makinde stated, “The Council recommends withdrawing the current tax reform bill from the National Assembly. This will allow for broader consultations and help build consensus on these reforms to benefit the entire nation. It’s also important for people to understand our vision and direction regarding tax reform, as there has been significant miscommunication and misinformation.”

READ ALSO: Gov Sule: Northern Nigeria Backs Tinubu’s Vision on Tax Reform

Northern Governors Oppose Legislation

On Monday, the Northern Governors’ Forum openly opposed certain proposals, specifically rejecting the VAT-sharing template outlined in one of the bills.

After meeting in Kaduna, the northern governors reached this resolution, advocating for equity and fairness.

Inuwa Yahaya, the chairperson of the forum, stated that companies remit VAT based on where their headquarters and tax offices are located instead of where services and goods are consumed. As a result, the forum has unanimously rejected the proposed Tax Amendments and urges members of the National Assembly to oppose any bill that could harm our people’s well-being.

“To be clear, the Northern Governors’ Forum supports policies and programs that promote national growth and development. However, the forum emphasizes the need for equity and fairness when implementing these initiatives to ensure no geopolitical zone is disadvantaged or marginalized,” he stated.

The governors present included Uba Sani from Kaduna State, Inuwa Yahaya from Gombe, Dauda Lawal Dare from Zamfara, Abdullahi Sule from Nasarawa, Babagana Zulum from Borno, Bala Mohammed from Bauchi, AbdulRahman AbdulRazaq of Kwara and Ahmadu Umaru Fintiri of Adamawa. The other states were represented by their deputy governors.

While reading the communiqué from the meeting, Governor Yahaya of Gombe State stated that the tax bills are detrimental to Northern interests and directed northern lawmakers to oppose them.