Amid the controversy rocking President Bola Tinubu’s Tax Reform Bills before the two Chambers of the National Assembly, the 36 State Governors, former Speaker of the House of Representatives, Yakubu Dogara, his Deputy and other stakeholders in the tax industry may have thrown their weight behind the bills, saying the time for it is now.
The support for the controversial bills could be inferred from the submission of the Governor of Nasarawa State, Abdullahi Sule who spoke on behalf of 36 State Governors during a Town Hall conversation on the bills aired by Channels Television.
At the three-hour town hall conversation on the tax reform bills monitored by our reporter, prominent Nigerians like former Speaker of the House of Representatives, Yakubu Dogara, the Chief Executive Officer of Global Investments and Trade Company, Baba Yusuf, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reform, Mr Taiwo Oyedele, asserted that the time for the reform is now.
Governor Abdullahi Sule who made his contribution at the end of the televised programme via telephone, said if the Town Hall had taken place earlier, the Governors wouldn’t have taken the position they took for withdrawal of the bills from the National Assembly a few weeks ago.
He specifically told Nigerians that had clarifications made by the Chairman of the Presidential Committee, which came up with the bills, Mr Taiwo Oyedele at the Town Hall conversation on the new formula for distribution of Value Added Tax, VAT, among the three tiers of government, known to governors a few weeks back, reservations expressed about the reform, wouldn’t have arisen.
“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.
Mr Oyedele had in his earlier clarification on some misconceived provisions of the reform bills, explained that the proposed tax reform aimed at shared prosperity for all Nigerians by exempting the vulnerable or the poor from personal income tax and shifting that to those that are gainfully employed, earning up to N1.5 million annually.
According to him, the proposed reform will address the most contentious issue of VAT distribution with a new formula driven by equity and shared prosperity.
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 debunked the insinuation that some provisions of the tax reform bills, aim at liquidating public agencies like the National Agency for Science and Engineering Infrastructure, NASENI, Tertiary Education Trust Fund, TETFund.
The former Speaker of the House of Representatives, Yakubu Dogara, posited at the Town Hall Conversation that the proposed tax reform will fetch the Northern part of the country $250 billion in years to come from livestock and exploration of mineral resources.
He said he had read through the four bills and discovered that they are well intended for the economic revival of the country and wealth creation for Nigerians.
He admonished Northern leaders, particularly, Governors, not to wear a cap of regionalism or religiosity at this time but that of leadership.
“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.
Tax Reform: Governors, ex-Reps Speaker, Deputy insist it is time to implement