Opposition to the Tax Reform bills remains unabated as the coalition of Northern Groups (CNG) Gombe State Chapter, together with Civil Society Organizations (CSOs) and critical stakeholders canvassed the reversal of the Value Added Tax (VAT) to 3 per cent.
In addition to the reversal, they condemned the process for the draft of the Tax Reform bills which they said lacks inclusivity and wide consultation of all regions and key stakeholders.
According to a statement co-signed by the CNG Gombe state coordinator, Muhammad Usman Deba after a town hall meeting on Tuesday at the Gombe State University, they canvassed stoppage of works on the bill as they argued the reduction would provide relief to citizens and businesses while encouraging economic activity.
Participants at the Town Hall meeting themed, “Tax Reform Bills, A Catalyst for Economic Growth or a Burden on the People” including policymakers, academics, civil society actors, community leaders, youth groups, and concerned citizens expressed their concerns over the potential socioeconomic consequences of the reforms, highlighting the heavy burden they may impose on already struggling citizens and businesses in the region.
The proposed Tax Reform Bills have faced opposition from various stakeholders, including the National Economic Council, the Northern Governors’ Forum and many more. The major concern revolves around the proposed amendment to the VAT distribution formula.
Regarding VAT distribution criteria, there were concerns about the potential negative impact of the tax reforms on the region’s economy, education, digital innovation and the well-being of its people. It was argued that the reforms could pressure businesses and individuals, hindering economic growth and development.
Related Posts
The opposition to the tax reform bills has led to calls for broader consultations and consensus-building among stakeholders,”
Citing the rejection of the bill by speakers and participants, Deba emphasised that the bills do not reflect the realities of the people and could subsequently increase poverty, unemployment, weaken the educational institution and cause economic hardship.
At the town hall meeting, other key deliberations and observations indicated that the proposed tax reform bills are not a catalyst for economic growth and as such would increase the existing economic challenges facing the North and Nigeria as a whole.
The statement also raised concerns about the provisions in the bills that propose the defunding of pivotal national institutions such as the Tertiary Education Trust Fund (TETFUND), the National Information Technology Development Agency (NITDA), and the National Agency for Science and Engineering Infrastructure (NASENI), noting that the institutions are critical to education, innovation, and technological advancement, particularly in Northern Nigeria, and their defunding would undermine regional and national development.
“The participants criticised the lack of meaningful consultation and engagement with stakeholders, particularly those from Northern Nigeria, during the formulation of the bills. This exclusion has resulted in policies that fail to reflect the realities and needs of Nigerians and warned that implementing such reforms could fuel discontent and add to social tensions, particularly in the North, where citizens are already facing severe economic and security challenges.”
“The overwhelming majority of participants unequivocally rejected the tax reform bills, viewing them as a direct assault on the economic and social well-being of Nigerians, particularly in Northern Nigeria”, stated Deba.
It further underscores the importance of alternative reforms that are inclusive, equitable, and designed to stimulate sustainable economic growth without imposing undue hardship on citizens, with recommendations for relocating banks’ head offices to Abuja citing its historically peaceful and neutrality from ethnic or religious tensions.
