By Oyinkansayo Wole-Bodunde
The proposed tax reform bills, which aim to change the way Value Added Tax (VAT) is shared, have sparked intense opposition, particularly from Northern Nigeria.
The bills, which prioritize the location of consumption as the basis for sharing VAT, have been rejected by Northern governors, traditional rulers, and the Northern Elders Forum, who claim they are not in the nation’s best interest.
Despite the backlash, the Senate passed the bills for second reading, prompting a governor from the North to express disappointment over the speedy passage of the bills.
In an interview with BBC Hausa, the governor stated, “We condemn these bills transmitted to the National Assembly. They will drag the north backward, and not only the north, South East, South West and some states in the South West such as Oyo, Osun, Ekiti, Ondo, will have problem with these bills.”
The governor emphasized that the opposition to the bills is not driven by politics but rather a genuine concern for the well-being of the nation. He urged President Bola Ahmed Tinubu to review the decision, citing the potential devastating impact on the North and other regions.
The proposed tax reform bills are part of a broader effort to streamline Nigeria’s tax administration processes and align them with global best practices. However, critics argue that the bills will lead to increased hunger, poverty, and insecurity in the North.
The governor warned that if the bills become law, states may struggle to pay salaries, and the economic situation may become unsustainable.
The controversy surrounding the tax reform bills highlights the need for careful consideration and consultation with stakeholders to ensure that any changes to the tax system benefit all regions and promote economic growth.
