Govenrors in Northern Nigeria have turned down the recent tax reform bill sent to the National Assembly by President Bola Tinubu’s government.
The governors stated this in a communiqué by the Chairman of the Northern Governors’ Forum, Muhammadu Inuwa, the governor of Gombe State.
This is coming as Tinubu, on October 3, 2024, had forwarded a tax reform bill to the Senate and House of Representatives for approval.
Part of the bill provides reforms in the sector, including changing the name of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
The governors rejected the bill, especially the proposed amendment to the distribution of value-added tax (VAT) to a derivative-based model.
They urged the National Assembly to throw out the bill.
“The Forum noted with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.
“The contents of the Blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of value-added tax (VAT) to a derivation-based model.
“This is because companies remit VAT using the 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 the National Assembly to oppose any bill that can jeopardise the well-being of our people.
“For the avoidance of doubt, the Northern Governor’s 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 fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized,” they stated.
