NEC To Tinubu: Withdraw Tax Reform Bills From National Assembly
The National Economic Council (NEC) has advised that the Tax Reforms Bill, currently before the National Assembly, be withdrawn because of the prevalence of miscommunication and misinformation surrounding it.
The Tax Reforms Bill, endorsed by President Bola Tinubu and the Federal Executive Council and sent to the National Assembly for passage into law aimed to enhance Nigeria’s tax administration efficiency and eliminate redundancies .
However, the Bill sparks controversies as Northern Governors’ Forum openly kicked and rejected it.
Northern Governors had alleged that the bid to review the method of determination of Value Added Tax, VAT will be against their financial well being.
Speaking after 145th NEC meeting in Abuja Governor. Seyi Makinde of Oyo State explained that the NEC noted the need for sufficient alignment among stakeholders regarding the proposed tax reforms.
He cited the prevalence of miscommunication and misinformation surrounding the bill, emphasising the need for wider consultation and consensus building.
Makinde stated that the council acknowledged the country’s underperformance in major revenue sources.
He said that council also considered the Presidential Committee on Fiscal Policy and Tax Reforms presentation of a report focusing on fair taxation, responsible borrowing, and sustainable spending.
Governor Umara Zulum of Borno, also affirmed the council’s advice to withdraw the bill to allow for consensus building.
However, the presidency had in an earlier statement on Thursday affirmed that tax reform was not targeted at the 19 northern states.
Presidential spokesperson, Bayo Onanuga, said that the tax reform seeks to correct the inequity in the current derivation model as a basis for distributing VAT revenue.
“While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration,” the statement read.
Onanuga added that the new policy initiatives are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
“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.