Friday, 01 November 2024 04:55

NEC asks Tinubu to withdraw Tax Reform bills amid northern opposition

Rate this item
(1 Vote)

The National Economic Council (NEC) has recommended the withdrawal of the Tax reforms bill already at the National Assembly.

The NEC headed by Vice-President Kashim Shettima has governors as members.

Speaking to state House Correspondents after a NEC meeting, on Thursday, Governor Seyi Makinde of Oyo State said following the controversies that arose as a result of the bills, NEC decided to withdraw them so that stakeholders could be carried along.

Arising from a meeting on Sunday, the Northern Governors’ Forum (NGF) chaired by Governor Inuwa Yahaya of Gombe State, announced rejection of the derivation-based model for Value Added Tax (VAT) distribution in the new tax bills.

Later Governor Abdullahi Sule of Nasarawa clarified the position of governors from the region, saying they were against the VAT bill because it would be unfair to the north.

Sule said that the governors were not against President Bola Tinubu, saying they brought him into power.

He said, “We can’t bring in Tinubu and then oppose him. If you look at the composition of the meeting you will see that there are people from the APC and the PDP. Some don’t even have a political party. We sat down and took the decision together.

“Some are traditional rulers. If you look at the law, it will be unfair to the north. By the time you say you are going to take something out of the sharing of the FAC and then say you are going to share something similar to something like that because that is the understanding we have based on the proposal. It’s going to be another 13% derivation.

“So, the states that have almost no VAT at the moment will end up actually with the shorter area of the stick. And you know, the 19 states of the north are generating very little when it comes to VAT at the moment.

“It’s very clear. I worked for some of these multinationals. I know how VAT is paid. When we were importing raw material at Dangote at Apapa port, we paid VAT first and then the finished product had VAT added to it.”

Earlier, on Thursday, Bayo Onanuga, Special Adviser to the President on Information and Strategy, had spoken about the “misunderstandings and misgivings around the tax reform already embarked upon by the administration.”

Speaking specifically on the proposed derivation-based VAT distribution model, Onanuga stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

“The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.”

“The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states,” he had said.

 

Daily Trust

December 10, 2024

Jeff Bezos on meetings: ‘I’m skeptical If it’s not messy’

If you ever find yourself in a meeting with Jeff Bezos, don’t expect the Amazon…
December 09, 2024

Ghana's former president wins election

Ghana's former President John Dramani Mahama has staged a political comeback by winning the West…
December 08, 2024

5 quick, simple ways to calm your mind—including 1 that ‘puts a brake on the stress response,’ doctor says

Renee Onque Meditating is a proven way to reduce stress, improve sleep and keep you…
November 30, 2024

Family spends $4,500 on lavish funeral for ‘faithful’ SUV

An Indian family recently went viral for their decision to send their old Suzuki Wagon…
December 07, 2024

Bombs planted by terrorists go off in Zamfara communities; third incident in a week

At least two explosive devices believed to have been planted by terrorists went off at…
December 10, 2024

What to know after Day 1020 of Russia-Ukraine war

Western Perspective: Zelensky Pushes for Diplomatic Resolution, Considers Foreign Troops Ukrainian President Volodymyr Zelensky has…
December 10, 2024

OpenAI launches Sora, its text-to-video AI model

OpenAI has expanded its artificial intelligence capabilities by releasing Sora, its text-to-video generative AI model,…
October 27, 2024

Nigeria awarded 3-0 win over Libya after airport fiasco

Nigeria have been awarded a 3-0 victory over Libya, and three vital points, from their…

NEWSSCROLL TEAM: 'Sina Kawonise: Publisher/Editor-in-Chief; Prof Wale Are Olaitan: Editorial Consultant; Femi Kawonise: Head, Production & Administration; Afolabi Ajibola: IT Manager;
Contact Us: [email protected] Tel/WhatsApp: +234 811 395 4049

Copyright © 2015 - 2024 NewsScroll. All rights reserved.