The Northern Governors’ Forum has unequivocally rejected the tax reform bill proposed by President Bola Ahmed Tinubu’s administration, citing its adverse effects on the interests of the north and other sub-nationals.
This decision was made public in a communiqué issued by the forum’s chairman, Muhammadu Inuwa, governor of Gombe State.
The governors specifically oppose the bill’s proposed amendment to the distribution of value-added tax (VAT) to a derivative-based model. According to them, “companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.” This, they argue, would unfairly disadvantage their region.
The Northern Governors’ Forum has urged the National Assembly to reject the bill, stating, “In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.”
While emphasizing their support for policies promoting national growth and development, the forum stressed the need for equity and fairness in implementing national policies. “For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country. However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized.”
Amidst the country’s economic hardship, the Northern Governors’ Forum has appealed to Nigerians to remain calm, as they work towards finding solutions to the challenges facing the nation.
