Tax Reform Bills Gain Support from 36 Governors, Stakeholders
The 36 State Governors, former Speaker of the House of Representatives, Yakubu Dogara, and other stakeholders in the tax industry have expressed support for President Bola Tinubu’s Tax Reform Bills. This development comes amid controversy surrounding the bills before the National Assembly.
According to Governor Abdullahi Sule of Nasarawa State, who spoke on behalf of the 36 State Governors during a Town Hall conversation on the bills, the governors are now inclined to support the reform. This change of heart comes after clarifications were made on the proposed reform, particularly regarding the elimination of multiple taxation.
Governor Sule noted that if the Town Hall conversation had taken place earlier, the governors would not have taken the position they took for withdrawal of the bills from the National Assembly a few weeks ago.
The proposed tax reform aims to promote shared prosperity for all Nigerians by exempting the vulnerable or poor from personal income tax. The reform also seeks to address the contentious issue of VAT distribution with a new formula driven by equity and shared prosperity. The Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr Taiwo Oyedele, explained that the current formula for sharing VAT among states is based on 20% derivation, 50% equality, and 30% population. However, the tax reform proposes a different model of derivation, which will attribute VAT to the place of supply and consumption rather than the state where it is remitted.
Stakeholders, including Mr Oyedele and the Chief Executive Officer of Global Investment and Trade Company, Mallam Buba Yusuf, have expressed support for the bills. They argue that the proposed reform is well-intentioned and will promote economic revival and wealth creation for Nigerians.
The former Speaker of the House of Representatives, Yakubu Dogara, also expressed support for the bills, stating that they will fetch the Northern part of the country $250 billion in years to come from livestock and exploration of mineral resources.
Dogara emphasized the need for Northern leaders to look beyond regionalism and religiosity, and instead focus on the economic benefits of the proposed reform. He noted that the reform will challenge the North to look inward and leverage the global livestock market, which is valued at $2.5 trillion. By tapping into this market, the North can earn an estimated $250 billion, according to Dogara.
The tax reform bills have been a subject of controversy, with some stakeholders expressing concerns about the potential impact on certain sectors of the economy. However, with the support of the 36 State Governors and other stakeholders, it appears that the bills are gaining momentum.
