The Bola Tinubu presidency is set to withdraw the Tax Reform Bills sent to the National Assembly just two months ago, following intense controversy generated by the four bills. President Tinubu had transmitted the bills to the parliament on September 3, 2024, during his vacation in London. The bills aimed to provide a fiscal framework for taxation, streamline tax administration, establish the Nigeria Revenue Service, and create a tax tribunal and ombudsman.
Tax Reform Bills:
- Nigeria Tax Bill 2024: Provides fiscal framework for taxation
- Tax Administration Bill: Streamlines tax administration and reduces disputes
- Nigeria Revenue Service Establishment Bill: Repeals Federal Inland Revenue Service Act and establishes Nigeria Revenue Service
- Joint Revenue Board Establishment Bill: Creates tax tribunal and ombudsman
However, the Northern Governors’ Forum rejected the Tax Reform Bill, citing unfair distribution of Value Added Tax (VAT). Governor Inuwa Yahaya of Gombe State explained that companies remit VAT based on their headquarters’ location, not where services and goods are consumed. The forum called for equity and fairness in national policies to avoid marginalizing any geopolitical zone.
The presidency’s decision to withdraw the bills follows the National Economic Council’s (NEC) 144th meeting recommendation. NEC, presided over by Vice President Kashim Shettima, suggested modifying and resubmitting the bills to the National Assembly.
Governor Abdullahi Sule of Nasarawa State clarified that the governors oppose the VAT bill, not President Tinubu. The decision was made to ensure fairness and protect the interests of the North and other sub-nationals.
