President Bola Tinubu’s administration has assured that the tax reform bill before the National Assembly is not targeted at the 19 northern states.
This is just as the National Economic Council NEC has urged the Federal government to withdraw the bill for a wider consultation before being passed into law.
The federal government since 2023 had sought to review the existing tax laws to promote efficiency and eliminate redundancies across the nation’s tax operations. Four executive bills have been table before the National assembly for deliberations.
However, governors of the 19 Northern states raised objections to the proposed amendments especially the distribution of Value Added Tax (VAT) to a derivation-based model.
Speaking Thursday President Tinubu’s adviser on information and strategy Bayo Onanuga said in a statement that the tax bill proposals are meant to create a fairer system that will benefit all states.
“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.
“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities,” he stated.
But after the NEC meeting Thursday in Abuja, President Tinubu was urged with take back the bill: “We saw the gap and decided that there is a need for a wider consultation,” said Oyo State governor Seyi Makinde who addressed journalists afteer the meeting.
“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills.”
