GOVERNORS, FORMER REPS SPEAKER, DEPUTY INSIST IT’S TIME FOR TAX REFORM
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The 36 State Governors, former Speaker of the House of Representatives Yakubu Dogara, his deputy, and other tax industry stakeholders may have thrown their support behind President Bola Tinubu’s tax reform bills amid the controversy roiling them before the two chambers of the National Assembly. They may have stated that the time is right.
The submission of Nasarawa State Governor Abdullahi Sule, who addressed a Town Hall discussion on the bills broadcast by Channels Television on behalf of 36 State Governors, suggested support for the contentious bills.
Prominent Nigerians such as former Speaker of the House of Representatives Yakubu Dogara, the CEO of Global Investments and Trade Company Baba Yusuf, and Mr. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, all stated that the time for reform is now during the three-hour town hall discussion on the tax reform bills that our reporter followed.
Governor Abdullahi Sule, who spoke by telephone at the conclusion of the broadcast show, stated that the Governors would not have adopted the stance they did in withdrawing the measures from the National Assembly a few weeks ago if the Town Hall had occurred sooner.
He specifically informed Nigerians that if the chairman of the Presidential Committee, Mr. Taiwo Oyedele, had clarified the new formula for allocating Value Added Tax, or VAT, among the three levels of government—which governors were aware of a few weeks ago—disapprovals of the reform would not have surfaced.
“I have listened to clarifications made on perceived misgivings by the Governors’ forum and some other critical stakeholders about the Tax Reform bills and getting inclined to the proposed reform, particularly in the area of elimination of multiple taxation.
“Some of us who are governors today, were in the recent past, key players in the companies that generate and pay heavy VAT to government coffers and clearly understand the lopsidedness of proceeds sharing being aimed to correct now.
“Specifically, if Mr Taiwo Oyedele had informed the governors that a new model of 60% VAT distribution for better equity is part of the reform as he clarified at this Town Hall Conversation, there wouldn’t have been much disagreement from the onset, meaning that the conversation being done now, was what the Governors’ forum requested for before forging ahead with processing the bill for consideration at the National Assembly”, he said.
In his previous explanation of some misunderstood aspects of the reform bills, Mr. Oyedele clarified that the proposed tax reform shifted personal income tax from the poor and vulnerable to those who are gainfully employed and make up to N1.5 million a year, with the goal of promoting shared prosperity for all Nigerians.
He claims that the proposed reform will use a new formula motivated by equity and shared prosperity to solve the most controversial topic of VAT allocation.
He said: “The current formula for sharing VAT among states is based on 20% derivation, 50% equality and 30% population. The tax reform proposes a different model of derivation which will attribute VAT to the place of supply and consumption rather than the current model which attributes VAT to the state where it is remitted thereby favouring states with company headquarters.
“Further, derivation under the new model will account for 60% of VAT distribution for better equity and to discourage any state from seeking to administer VAT as a state tax, which will not only result in much lower revenue for all tiers of government but will impose a higher burden on businesses”.
He also refuted the suggestion that certain tax reform bill sections are intended to shut down government organizations such as the Tertiary Education Trust Fund, TETFund, and the National Agency for Science and Engineering Infrastructure, or NASENI.
At the Town Hall Conversation, former House of Representatives Speaker Yakubu Dogara made the claim that the planned tax reform will generate $250 billion in future revenue for the northern region of the nation from livestock and mineral resource exploration.
He claimed to have studied the four legislation and found that they are well-aimed at reviving the nation’s economy and generating riches for Nigerians.
He cautioned Northern politicians, especially governors, to wear the hat of leadership at this time rather than one of regionalism or religiosity.
“Time is always rife to do right. The time to carry out the proposed tax reform based on the four bills I’ve personally read is now and not tomorrow.
“For us in the North, the proposed reform is challenging us to look inward by keying into the $ 2..5 trillion =global Livestock market through the Livestock Ministry recently created.
“Leveraging on the Livestock market and managing other resources prudently, based on projections by experts, will in no distant time, make the North earn about $25 billion from the $2.5 trillion global livestock market.”
Similarly, the Chief Executive Officer of Global Investment and Trade Company, Mallam Buba Yusuf, described the reform bills as well envisioned for the revival of the Nation’s economy through competitive revenue generation and distribution.
” I’ve read the bills, they are well envisioned for the country and Nigerians.
“Nigerians particularly those of us from the North, should read the bills and not just listen to those misinforming them on what the planned reform is all about,” he said.
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