Unless there are last-minute changes, the Bola Tinubu administration plans to withdraw the Tax Reform Bills submitted to the National Assembly just two months ago.
Gists9ja reports this decision follows the controversy surrounding the four bills, which President Tinubu introduced on September 3, 2024.
The presidency has decided to retract the bills, with sources indicating that the proposed legislation will be revised and resubmitted to the National Assembly at a later date.
During the 144th meeting of the National Economic Council (NEC) yesterday, which was chaired by Vice President Kashim Shettima, a recommendation was made to withdraw the tax reform bills. This recommendation arose after governors from 19 northern states met in Kaduna on Monday with prominent traditional leaders, where they collectively rejected the Nigeria Tax Reform Bill.
In a communiqué issued after their meeting, the northern governors and monarchs expressed their opposition to the recent Tax Reform Bill, stating that its provisions did not align with the interests of the northern region and other sub-nationals, particularly regarding the proposed changes to the distribution of the Value Added Tax (VAT).
On September 3, President Tinubu transmitted four tax reform bills to the National Assembly for consideration while he was on vacation in London. The bills were delivered via a letter addressed to the Speaker of the House, Abbas Tajudeen, which was read during the plenary session that day.
The proposed legislation includes the Nigeria Tax Bill 2024, aimed at establishing a fiscal framework for taxation in the country, and the Tax Administration Bill, which seeks to provide a clear legal structure for all taxes and reduce disputes.
Also included are the Nigeria Revenue Service Establishment Bill, which would repeal the Federal Inland Revenue Service Act to create the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which proposes the establishment of a tax tribunal and a tax ombudsman.
President Tinubu stated that the bills were intended to support his administration’s goals and strengthen fiscal institutions in Nigeria, emphasizing that they would enhance taxpayer compliance, reinforce fiscal institutions, and create a more effective and transparent fiscal regime.
The president further stated that he was confident that if the bills were passed, they would encourage and stimulate the economy.
Explaining their decision to reject the Tax Reform Bill, the Chairman of the Northern Governors’ Forum, Governor Inuwa Yahaya of Gombe State, while reading the communiqué of the forum’s meeting said: “This is because companies remit VAT using location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the forum unanimously rejects the proposed Tax Amendments and calls on members of National Assembly to oppose any bill that can jeopardise the well-being of our people.
“For the avoidance of doubt, the Northern Governors’ Forum is not averse to any policies or programmes that will ensure the growth and development of the country. However, the forum calls for equity and farness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalised”, he said.
Later, Governor Abdullahi Sule of Nasarawa State further clarified the position of governors from the region, saying they were against the VAT bill because it would be unfair to the North as a whole.
Sule said that the governors were not against President Tinubu.
He said: “We can’t bring in President Tinubu and then oppose him. If you look at the composition of the meeting you will see that they are people from the APC and the PDP. Some don’t even have a political party. We sat down and took the decision together.
“Some are traditional rulers. If you look at the law, it will be unfair to the North”, he reiterated.
