The Northern Governors’ Forum, led by Gombe State’s Governor Muhammadu Inuwa, has officially rejected the tax reform bill proposed by President Bola Ahmed Tinubu’s government.
This decision follows the bill’s submission to the National Assembly on October 3, 2024, which includes significant changes such as renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS).
The governors expressed particular concern regarding the proposed amendment to the distribution of value-added tax (VAT), advocating for a derivative-based model.
They urged the National Assembly to dismiss the bill, highlighting their stance against the reforms.
“The Forum noted with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.
“The contents of the Blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of value-added tax (VAT) to a derivation-based model.
“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.
“In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.
“For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country.
“However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized,” they stated.
Meanwhile, the Forum called on Nigerians to remain calm amid economic hardship bedevilling the country.
