House of Representatives members of northern extraction have raised a fresh concern over the four tax reform bills undergoing consideration in the National Assembly (NASS).
They raised the alarm during the interactive session organised by the Green Chambers with the members of the Presidential Committee on Fiscal Policy and Tax Reforms on Monday.
The lawmakers wspoke against the bills belong to both the ruling All Progressives Congress (APC) and the Peoples Democratic Party ({PDP) are Yusuf Adamu Gagdi (Plateau, APC), . Ahmed Jaha Babawo (Borno, APC), Zainab Gimba (Borno, Borno), and . Zakariah Dauda Nyampah (Adamawa, PDP). According to them, the bills’ potential would negatively impact the North.
They said insecurity and poor productivity had weakened the region’s economy, adding that bills would inflict more economic woes on the north.
The northern lawmakers raised concerns that the socio-economic vulnerabilities faced by states in the region, largely driven by insecurity, have not been adequately considered in the proposed tax reform bills.
The lawmakers called for a balanced approach to the tax reform process, one that considers the region’s security challenges and ensures fair treatment for all states.
According to. Gagdi, insecurity has grounded the once vibrant economies of states in the north, adding that VAT proceeds tied to consumption and other import-related taxes.
He said for a long time past, industries, factories, and other means of production in these areas had been shut down, with large portions of the productive population displaced or rendered less effective due to Boko Haram insurgency, kidnappers and banditry.
Corroboratin Gagdi, another lawmaker from the north, Rep. Jaha said the timing of the proposed tax amendments is inappropriate given the current security situation in the North, which has significantly affected its economy.
He said the derivation-based revenue-sharing formula puts the region at a disadvantage.
“There are regions, especially in the North, that are not economically viable due to security challenges. The proposed VAT allocation formula would treat these states unfairly,” Jaha said.
Rep. Gimba said states such as Borno, where insurgency has significantly hindered economic activities woud be worst hit by the new tax bills, and urged for a more equitable VAT-sharing formula that would account for the unique challenges faced by such states.
Similarly, Rep. Nyampah said the controversial provisions in the reform bills would adversely affect northern states, both individually and collectively.
The bills which particularly proposed amendment to the distribution of Value Added Tax (VAT) revenue are: The Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country; and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
The others are: the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service (FIRS) Act and establish the Nigeria Revenue Service (NRS), and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
The National Economic Council (NEC) and state governors have urged President Bola Ahmed Tinubu to withdraw the bills for further consultations.
Also, northern leaders, including traditional rulers and lawmakers, have expressed their opposition, saying the proposed reforms are skewed against the region.
Despite this, President Tinubu has maintained that the legislative process should proceed, emphasising that ongoing deliberations allow for inputs and amendments without the need to withdraw the bills.
