Tax Reform Bills Remain on Table, Says President Tinubu

In the midst of ongoing debates surrounding tax reform in Nigeria, President Bola Tinubu has affirmed that the controversial tax reform bills will not be withdrawn from the National Assembly. This statement comes on the heels of the National Economic Council’s (NEC) recommendation for withdrawal to facilitate further consultations.

Bayo Onanuga, the President’s Special Adviser on Information and Strategy, shared this update, emphasizing that the bills should continue through the legislative process rather than being shelved. President Tinubu acknowledged the NEC’s advice, which included input from Vice President Kashim Shettima and governors from across the 36 states. He expressed his belief that allowing the legislative process to unfold would enable necessary adjustments to the proposals without a complete withdrawal.

The NEC had previously expressed concerns regarding the tax reform bills introduced by the President, which were based on recommendations from the Presidential Committee on Fiscal and Tax Reforms. The council’s meeting, chaired by Vice President Shettima, resulted in a unanimous call for the bills’ withdrawal to allow for broader stakeholder engagement and ensure the reforms meet the needs of all Nigerians.

Governor Seyi Makinde of Oyo State, addressing the media after the NEC meeting, highlighted the importance of aligning the interests of various stakeholders to achieve a fair taxation system. He underscored the need for further consultations to clarify the reforms’ vision and alleviate any misunderstandings that have arisen.

The Northern Governors’ Forum has also voiced its opposition to certain aspects of the tax reform proposals, particularly the value-added tax (VAT) distribution model. The forum’s concerns center around the notion that VAT is remitted based on the headquarters of companies rather than where services are rendered, which they believe could disproportionately affect the northern region.

In summary, while the NEC and northern governors have raised significant concerns about the proposed tax reforms, President Tinubu remains committed to allowing the legislative process to continue, aiming to make necessary adjustments through further dialogue and stakeholder engagement. The ongoing discussions reflect a critical moment for Nigeria’s economic future as it navigates the complexities of taxation and fiscal policy.