Responding to public concern, the Presidency assures that the proposed tax reform bill is not biased against the North. Learn more about the bill’s intentions and regional impact.
According to the presidency, the tax reform bill currently under consideration by the National Assembly does not specifically target the 19 northern states.
The governors of the 19 Northern states had opposed the bill, particularly objecting to the proposed amendment that would shift VAT distribution to a derivation-based model.
However, in a statement on Thursday, presidential spokesman Bayo Onanuga stated that the new proposal outlined in the bill is intended to establish a more equitable system benefiting all states.
Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, mentioned that the current tax reform aims to address the inequality in how VAT revenue is distributed under the existing derivation model.
The statement expressed appreciation for the Governors and traditional rulers’ support of President Bola Tinubu in successfully tackling the country’s security challenges. However, it also emphasized the need to clarify any misunderstandings or concerns regarding the tax reform initiated by his administration.
Onanuga stated that the new policy initiatives are designed to streamline Nigeria’s tax administration processes, improve efficiency, and eliminate redundancies throughout the nation’s tax operations.
He clarified that the proposed reforms are essential for enhancing the lives of Nigerians and were not introduced by President Tinubu to disadvantage any region of the country.
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President Tinubu and the Federal Executive Council have recently approved new policy measures designed to streamline Nigeria’s tax administration processes, improve efficiency, and eliminate redundancies in the country’s tax operations.
These reforms were developed following a comprehensive review of current tax laws. The National Assembly is evaluating four executive bills aimed at transforming and modernizing Nigeria’s tax framework.
The Nigeria Tax Bill is a priority, designed to eradicate unintentional multiple taxation and enhance the competitiveness of Nigeria’s economy by streamlining tax responsibilities for businesses and individuals across the country.
Secondly, the Nigeria Tax Administration Bill (NTAB) introduces new regulations for managing all taxes nationwide. It aims to streamline tax administrative procedures across federal, state, and local levels to simplify compliance for taxpayers throughout the country.
Third, the Nigeria Revenue Service (Establishment) Bill proposes renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS). This change aims to more accurately represent its role as the revenue agency for the entire federation rather than just serving the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill suggests forming a Joint Revenue Board to take over from the Joint Tax Board and include federal and all state tax authorities,” he stated.
