NEC calls for withdrawal of tax reform bill

This bill was based on the findings and recommendations of the Presidential Committee on Fiscal and Tax Reforms, which was established by the President to enhance revenue generation in Nigeria.

During a meeting led by Vice President Kashim Shettima at the Presidential Villa in Abuja, the NEC unanimously called for the withdrawal of the bill.

The governors emphasized the importance of thorough alignment among stakeholders concerning the proposed reforms.

Governor Seyi Makinde of Oyo State, who addressed reporters following the meeting, stated that the NEC noted the necessity of consulting all stakeholders, including state governors, to ensure the legislation benefits all Nigerians.

“Today, the NEC received a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms, focusing on equitable taxation, responsible borrowing, and sustainable spending,” he said.

The Council recognized that the country is performing poorly across several metrics, including revenue generation and tax-to-GDP ratios.

“After extensive discussions, NEC highlighted the need for alignment among stakeholders for the proposed reforms. Consequently, the Council recommended the withdrawal of the current tax reform bill in the National Assembly to allow for broader consultations and build consensus regarding these reforms for the betterment of the nation. It is also essential to clarify the objectives and direction of the tax reform initiatives, as there is considerable miscommunication and misinformation out there,” Governor Makinde explained.

Northern Governors Reject the Bill

This decision follows a recent rejection of certain provisions of the bill by the influential Northern Governors’ Forum, particularly the VAT-sharing framework outlined in the legislation.

The northern governors revealed this during a meeting in Kaduna, where they called for equity and fairness in tax policies.

“This is due to the way companies remit VAT based on the location of their headquarters rather than where goods and services are consumed. Therefore, the forum has collectively rejected the proposed tax amendments and urges National Assembly members to oppose any legislation that could negatively impact our constituents,” stated Inuwa Yahaya, the chairperson of the forum.

He clarified that the Northern Governors’ Forum supports policies aimed at promoting national growth and development but insists on fairness in all implementations to avoid marginalizing any geopolitical zone.

The meeting was attended by governors from various states, including Uba Sani of Kaduna, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, Abdullahi Sule of Nasarawa, Babagana Zulum of Borno, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, and Ahmadu Umaru Fintiri of Adamawa, with other governors represented by their deputies.

Governor Yahaya of Gombe State, while presenting the communiqué, stated that the tax bills do not serve the interests of the North and instructed northern lawmakers to reject them.