Atiku, Ohanaeze, Afenifere… critics and supporters of Tinubu’s tax reform bill
The tax reform bill proposed by the President Bola Ahmed Tinubu led administration is aimed at revamping the entire Nigeria Tax system.
Since the proposition, the bill has sparked significant heated debates among various stakeholders; each expressing their concerns and oppositions.
Interesting things to know about the bill
- The tax reform stated in July 2024 when president Bola Ahmed Tinubu inaugurated the Presidential Fiscal Policy and Tax Reforms Committee (PFPTRC).
- The bill incorporates four major areas:
- Consolidation of Tax Authorities by merging various tax authorities into a single entity: the Nigeria Revenue Service (NRS).
- Increased Value Added Tax Rate particularly for corporate taxes to generate more revenue.
- Expansion of the Tax base by bringing more individuals and businesses into the tax net.
- Introduction of new taxes such as carbon tax and digital service tax.
- The bill has passed a second reading in the House.
- The House of Reps has suspended the debate of the bill through a memo dated November 30th entitled ” Rescheduling of Special Session on Tax Reform Bills” signed by the clerk of the House, Dr. Yahaya Danzania.
Major Opposition to the tax reform
The bill has been kicked by various groups as heated contention has been seen over the sharing of the value added tax by 60% through the derivation principles.
About 19 governors from the North has expressed strong opposition to the bill citing it’s consequence on Northern regional economy. Amongst them includes:
Borno state governor,Prof Babagana Zulum raised strong criticism over the proposed bill stating that it could cause devasting acts on the Northern region.
Speaking in an Interview on Channel’s Televion Sunday Politics , he says “On this tax issue, there are a lot of misconceptions. We felt that the VAT provision in the tax law. Based on the calculations that we did, only Lagos and Rivers States will benefit from this scheme. We did our own research and concluded that we would lose.”
Ali Ndume, the senator representing Borno North Central Senatorial District also criticized the timing of the bill noting that the it isn’t favourable to the Northern region. He strongly questioned the derivation principles of the Value Added Tax arguing that it lacked widespread agreement. He said the government should look into governance reform than tax reform. He termed it “suspicious”.
Aminu Tambuwa, former governor of Sokoto State and Senator Representing Sokoto South Senatorial District vehemently stood against the bill. This he made known in his district during the distribution of relief materials to victims of flood in the region.
He said “I believe this is a wrong time for any upward review of either VAT or any form of tax, the time inaupicious, the time is very wrong.These are hard times for the people of Nigeria and what they are going through. What we require of the government is for it to focus on projects and programs that will bring succour and relief to the people and not to increase their hardship.”
Earlier on Sunday Former PDP Presidential candidate Atiku Abubakar expressed his take on the proposed bill though his Twitter / X channel .
He stated “I have followed the intense public discourse on the Tax Reform Bills with keen interest.Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity. They are loud and clear that the fiscal system we seek to promote must not exacerbate the uneven development of the federating units by enhancing the status of a few states while unduly penalising other.”
Also included in the voices of protest are the seventy -three (73) Northern lawmakers who argued that the reforms are rushed and lacked adequate consultation. The Civil Society Organizations, Arewa Youth Forum who terms the bill “unfair” notes the negative impact the proposed bill will have on the poor especially in regions facing economic challenges.
However, it is worth to know that Ohaneze Ndigbo and Afenifere backed up the bill. According to them, the bill will bring transformative opportunities for everyone.
