Northern Govs Reject Proposed Tax Reform Bill

The 19 state governors from Northern Nigeria have expressed strong opposition to the recently submitted Tax Reform Bill, particularly criticizing the proposed shift to a Derivation-based Model for Value Added Tax (VAT) distribution.

They argued that this model would unfairly disadvantage northern states and other less industrialized regions.

The governors, meeting under the Northern States Governors’ Forum (NSGF) in Kaduna, issued a communique read by Gombe State Governor Muhammad Yahaya.

The meeting included prominent stakeholders, such as northern traditional rulers and military officials.

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In their statement, the governors highlighted concerns regarding the current VAT distribution, which is based on the location of company headquarters rather than where goods and services are consumed.

They fear that the new proposal will significantly reduce revenue from the Federal Accounts Allocation Committee for northern states.

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“The forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly,” the communique stated. “We unanimously reject the proposed Tax Amendments and call on members of the National Assembly to oppose any bill that can jeopardize the well-being of our people.”

The governors emphasized the need for equity and fairness in national policy implementation, insisting that no geopolitical zone should be marginalized.

They affirmed their support for policies promoting national growth while advocating for fair treatment in the execution of such policies.