Amid the controversy trailing the Tax Reform Bills, President Bola Tinubu has declared that the document would not be withdrawn from the National Assembly.
The Special Adviser to the President on Information and Strategy, Bayo Onanuga, disclosed this in a statement.
He rather explained that the bill should go through the legislative process.
According to the statement, President Bola Tinubu “received the National Economic Council’s recommendation that the tax reform bills already sent to the National Assembly be withdrawn for further consultation.”
The President also commended the National Economic Council (NEC)gmembers, especially Vice President Kashim Shettima and the 36 State Governors, for their advice.
“He believes that the legislative process, which has already begun, provides an opportunity for inputs and necessary changes without withdrawing the bills from the National Assembly.
“While urging the NEC to allow the process to take its full course, President Tinubu welcomes further consultations and engagement with key stakeholders to address any reservations about the bills while the National Assembly considers them for passage.
“When President Tinubu set up the Presidential Committee on Tax and Fiscal Policy Reform in August 2023, he had only one objective: to reposition the economy for better productivity and efficiency and make the operating environment for investment and businesses more conducive. This objective remains more critical even today than ever before,” the statement read.
On Thursday, the National Economic Council (NEC) expressed reservations over the Tax Reform Bill forwarded by President Bola Tinubu to the National Assembly.
The bill was forwarded to NASS based on the report and recommendations of the Presidential Committee on Fiscal and Tax Reforms set up by the President to help boost revenue generation in the country.
This was part of the resolutions reached during the National Economic Council meeting chaired by Vice President Kashim Shettima at the Presidential Villa in Abuja.
Briefing State House Correspondents after the meeting, the governors noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
Oyo State governor, Seyi Makinde, 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.
“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 bill.