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The National Economic Council (NEC) has voiced its apprehensions concerning the Tax Reform Bill that President Bola Tinubu has forwarded to the National Assembly, highlighting the need for careful consideration of its effects on fiscal policy and economic stability.
Forwarded to the National Assembly, the bill is rooted in the comprehensive report and recommendations provided by the Presidential Committee on Fiscal and Tax Reforms, a task force appointed by the President to identify strategies for boosting revenue generation within the country.
The National Economic Council (NEC) has reached a unanimous decision to call for the withdrawal of the bill, highlighting the council’s shared concern over the potential impact of the legislation on the economy.
The recommendation for withdrawal was a significant outcome of the National Economic Council meeting, chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja, where crucial economic issues were deliberated.
Following the meeting, the governors spoke to State House Correspondents, pointing out the necessity for robust alignment among all stakeholders to effectively navigate the complexities of the proposed reforms.
Governor Seyi Makinde of Oyo State who briefed journalists said NEC observed that adequate consultations needed to be made to get the views of stakeholders including the state governors to ensure that the law is favourable to all Nigerians.
“NEC today took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms. Their main focus is fair taxation, responsible borrowing, and sustainable spending,” he said.
“The Council acknowledged that the country is underperforming on all indices as regards yield from major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
Read also: Govs Advise Tinubu To Withdraw Tax Reform Bill From NASS
“So Council, therefore, recommend the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform because there’s really a lot of miscommunication, misinformation,” Governor Makinde said.
The move came days after the influential Northern Governors’ Forum rejected some of the proposals, particularly the VAT-sharing template in one of the bills.
The northern governors reached this resolution after a meeting in Kaduna, demanding equity and fairness.
“This is because companies remit VAT based on the location of their headquarters and tax office, rather than 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 could jeopardise the well-being of our people,” said Inuwa Yahaya, who also serves as the chairperson of the forum.
“For the avoidance of doubt, the Northern Governors’ Forum is not opposed to policies or programs aimed at fostering national growth and development. However, the forum calls for equity and fairness in implementing all national policies and programs to ensure that no geopolitical zone is short-changed or marginalised,” he said.
The governors in attendance were Uba Sani of Kaduna State, Inuwa Yahaya of Gombe, Dauda Lawal Dare of Zamfara, Abdullahi Sule of Nasarawa, Babagana Zulum of Borno, Bala Mohammed of Bauchi, AbdulRahman AbdulRazaq of Kwara, and Ahmadu Umaru Fintiri of Adamawa. Other governors were represented by their deputy governors.
Governor Yahaya of Gombe State, while reading the communiqué from the meeting, said the tax bills are against the interests of the North and instructed northern lawmakers to reject the bills.
