The National Economic Council (NEC) has requested that President Bola Tinubu withdraw the Tax Reforms Bills from the National Assembly to allow for broader consultations and consensus-building among Nigerians. This decision was reached during the 144th NEC meeting at the State House in Abuja, as disclosed by Oyo State Governor Seyi Makinde.
Reasons for Withdrawal
- NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills.
- The council members agreed that it was necessary to allow for consensus building and understanding of the bills among Nigerians.
- The decision was made for the benefit of the country and emphasized the need for further consultations regarding the bills.
Background
- President Bola Tinubu and the Federal Executive Council recently endorsed new policy initiatives to streamline Nigeria’s tax administration processes.
- The Federal Government says the new laws aim to enhance efficiency and eliminate redundancies across the nation’s tax operations.
- The reforms emerged after a review of existing tax laws since August 2023.
Reactions
- The Northern Governors Forum rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.
- Governors of the 19 Northern States deemed the proposition contrary to the interest of the North and other sub-nationals.
By withdrawing the Tax Reforms Bills, the NEC aims to address concerns and ensure that the legislation benefits all Nigerians.
