President Bola Tinubu says the proposed tax reform bills by his administration is not against the north as alleged by governor’s and other stakeholders from the region.
“These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country,” the president said.
In a statement by Bayo Onanuga, Special Adviser to President Tinubu on Information and Strategy, on October 31, the president said that “the new proposal…is designed to create a fairer system.”
Recall that governors from the 19 states in the North under the Northern Governors’ Forum on October 28, opposed the new derivation-based model for Value Added Tax (VAT) distribution in the new tax reform bills before the National Assembly.
The northern governors’ meeting also had traditional rulers from the region, led by the Sultan of Sokoto, Muhammadu Sa’ad Abubakar III, in attendance.
At the meeting, the stakeholders had opposed the tax reform bills and asked lawmakers from the region at the National Assembly to also oppose the legislation.
The northern governor’s said that their opposition was because “companies remit VAT using location of their headquarters and tax office and not where the services and goods are consumed.”
In response to the opposition, President Tinubu added that the new policy initiatives were aimed at “streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.”
The president added that the reform focuses on “ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.”
The president’s statement said the National Assembly was considering four executive bills designed to transform and modernise Nigeria’s tax landscape.
“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country.
“It aims to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.
“The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers,” the statement added.
