NEC Urges Withdrawal of Tax Reform Bill Following Northern Governors’ Opposition
The National Economic Council (NEC) has called for the retraction of the Tax Reform Bill recently submitted to the National Assembly by President Bola Tinubu. This decision comes shortly after the Northern Governors’ Forum criticized the bill.
During a meeting at the Presidential Villa in Abuja, chaired by Vice President Kashim Shettima, the NEC highlighted the importance of engaging various stakeholders in discussions surrounding the proposed reforms. Oyo State Governor Seyi Makinde stated that comprehensive consultations are crucial to ensure the law serves all Nigerians effectively.
The Tax Reform Bill, developed from recommendations by the Presidential Committee on Fiscal and Tax Reforms, aims to enhance the country’s revenue generation. However, NEC members expressed concerns about the bill’s alignment with the interests of all parties involved. They emphasized that the nation is currently falling short in revenue generation metrics and tax-to-GDP ratios.
Governor Makinde elaborated that the NEC’s recommendation to withdraw the bill is intended to foster broader consultations and build consensus on tax reforms, addressing the prevalent misunderstandings about the reform objectives.
Earlier, the Northern Governors’ Forum had unanimously rejected certain proposals within the bill, especially the VAT-sharing framework, which they argue is inequitable. They noted that companies typically remit VAT based on their headquarters’ location rather than where the goods or services are consumed, calling for fairness in the implementation of national policies.
In a recent communiqué, Gombe State Governor Inuwa Yahaya urged northern lawmakers to oppose any legislation that undermines the interests of their region, asserting the forum’s commitment to national growth and equity.
As discussions continue, the NEC and the Northern Governors’ Forum underscore the need for transparent and inclusive dialogue to ensure that tax reforms benefit all regions and communities in Nigeria.