Proposed tax reform bill not against the North – Presidency

Governors from these northern states have expressed their opposition to the bill, particularly concerning the proposed shift to a derivation-based model for distributing Value Added Tax (VAT).

In a statement released yesterday, presidential spokesman Bayo Onanuga emphasized that the new proposal outlined in the bill is intended to establish a fairer system that benefits all states.

Onanuga, who serves as the Special Adviser on Information and Strategy to President Bola Tinubu, noted that the ongoing tax reform aims to rectify the inequities associated with the current derivation model used for distributing VAT revenue.

“While we commend the governors and traditional rulers for their support of President Bola Tinubu in addressing the country’s security challenges, we find it necessary to clarify the misunderstandings surrounding the tax reform initiative undertaken by this administration,” the statement read.

Onanuga explained that the new policy initiatives are designed to streamline Nigeria’s tax administration processes, improve efficiency, and eliminate redundancies in the nation’s tax operations.

He emphasized that these proposed reforms are essential for enhancing the lives of Nigerians and were not intended by President Tinubu to disadvantage any region of the country.

“President Tinubu and the Federal Executive Council have recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, boosting efficiency, and removing redundancies across the nation’s tax operations.

“These reforms were developed following a comprehensive review of existing tax laws. The National Assembly is currently considering four executive bills aimed at transforming and modernizing Nigeria’s tax framework.

“The first is the Nigeria Tax Bill, which seeks to eliminate unintended multiple taxation and enhance the competitiveness of Nigeria’s economy by simplifying tax obligations for businesses and individuals nationwide.

“The second is the Nigeria Tax Administration Bill (NTAB), which proposes new regulations governing the administration of all taxes in the country, aiming to harmonize tax administrative processes across federal, state, and local levels for easier compliance by taxpayers throughout the nation.

“The third is the Nigeria Revenue Service (Establishment) Bill, which aims to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect its role as the revenue agency for the entire federation, rather than just the Federal Government.

“The fourth is the Joint Revenue Board Establishment Bill, which proposes the formation of a Joint Revenue Board to replace the Joint Tax Board, encompassing federal and all state tax authorities,” he stated.