Northern governors have rejected President Bola Ahmed Tinubu’s latest tax reform plan, which was handed to the National Assembly.
The Northern governors announced this in a communiqué issued Monday by the Northern Governors’ Forum’s Chairman, Gombe State Governor Muhammadu Inuwa.
This comes after Tinubu, on October 3, 2024, submitted a tax reform measure to the Senate and House of Representatives for approval.
Part of the law includes sector adjustments, such as changing the name of the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service.
The Northern governors are hostile to the law, particularly the planned change in the value-added tax (VAT) distribution to a derivative-based approach.
They urged the National Assembly to reject the measure.
The Northern governors said:
“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.”
Meanwhile, the Forum urged Nigerians to stay calm in the face of the country’s economic challenges.
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cc: Daily Post Ng
