Presidential Directive for Tax Bill Review
Amid mounting controversy over the Tax Reform Bills, President Bola Tinubu has ordered a review of the legislation to address concerns raised by Nigerians. On Tuesday, as he was in South Africa, the President directed the Ministry of Justice to collaborate with the National Assembly to resolve any issues related to the bills. This move comes after significant protests from northern governors and lawmakers, who have expressed strong opposition to certain aspects of the reforms.
Overview of the Tax Bills
The tax reform package, which includes the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill, has sparked heated debates nationwide. Critics argue that the bills could undermine fiscal federalism by centralizing tax authority and reducing state revenues. Northern leaders, in particular, have voiced concerns that the new VAT distribution model would disproportionately favor wealthier states like Lagos and Rivers, further widening regional disparities.
Addressing Concerns Over the Bills
In an effort to calm rising tensions, President Tinubu emphasized the government’s commitment to addressing all genuine concerns before the bills are passed. The Ministry of Justice, along with the officials who drafted the bills, is now working closely with the National Assembly to ensure all issues are resolved. According to a statement by the Minister of Information and National Orientation, Mohammed Idris, the President has welcomed meaningful input from lawmakers to improve the reforms and ensure their successful passage.
Protests in Support of the Bills
While opposition to the bills has been vocal, a group of northern youths staged a protest at the National Assembly on Tuesday, showing their support for the tax reforms. The protesters, who carried placards reading “Leave Senator Barau Alone,” praised Deputy Senate President Barau Jibrin for his backing of the bills. The protestors, led by Tijani Mohammed, argued that the reform would bring positive change, particularly in revenue sharing, and urged Nigerians to support the passage of the bills.
Continued Debate and Political Divide
As debates on the tax reforms continue, prominent political figures have expressed differing views. Some northern governors, including Governor Babagana Zulum of Borno State, have warned that the reforms could harm the financial autonomy of their states. Conversely, governors like Abdullahi Sule of Nasarawa State and former Speaker Yakubu Dogara have endorsed the bills. The Senate has already passed the bills for a second reading, though opposition remains strong, particularly regarding the new VAT-sharing formula.
Wider Support and Criticism
Not all voices are opposed to the reforms. Catholic Bishop Hassan Kukah has expressed support for the bills, noting that they could end financial mismanagement by the elite and improve Nigeria’s economic stability. Meanwhile, the Ekiti State Caucus in the National Assembly has also rallied behind the reforms, calling them essential for economic growth and national prosperity. However, groups like the Arewa Dignity Advancement Initiative have criticized the proposed changes, arguing that they could exacerbate economic hardship in certain regions.
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