The National Economic Council (NEC) has requested that President Bola Tinubu withdraw the Tax Reforms Bills from the National Assembly to allow for broader consultations and consensus building. This decision was reached during the 144th NEC meeting at the State House in Abuja.
Oyo State Governor Seyi Makinde announced that council members agreed on the need for consensus building and understanding among Nigerians regarding the bills. Makinde emphasized that the decision was made in the country’s best interest and stressed the importance of further consultations.
According to Makinde, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills.” He added, “We saw the gap and decided that there is a need for a wider consultation.”
The Tax Reforms Bills aim to streamline Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies. The reforms follow a review of existing tax laws since August 2023.
The National Assembly is currently considering four executive bills containing these tax reform efforts. However, the Northern Governors Forum has expressed opposition to the new derivation-based model for Value-Added Tax (VAT) distribution.
At a meeting on October 28, 2024, the Governors of 19 Northern States rejected the proposition, stating it negates the interest of the North and other sub-nationals. Governor Muhammed Yahaya of Gombe State, Chairman of the forum, read the communiqué.
In response, the Presidency clarified that the tax bill would simplify, not burden, the North. Special Adviser to the President on Information and Strategy Bayo Onanuga explained that the bill eliminates multiple taxation, promoting economic development.
The proposed laws aim to optimize and simplify existing tax frameworks without increasing taxes. The reforms focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.
The tax reforms include the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board Establishment Bill. These bills aim to harmonize tax administrative processes and create a fairer system.
The NEC’s decision highlights the need for inclusive decision-making and consultation in Nigeria’s tax reform process.
