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NEC to Tinubu: Withdraw Tax Reform Bills

In a significant development, the National Economic Council (NEC) on Thursday advised President Bola Tinubu to withdraw the proposed Tax Reform Bills currently before the National Assembly, recommending that the government conduct further consultations and build broader consensus.

This recommendation was made during the 144th NEC meeting held at the State House in Abuja.

Oyo State Governor, Seyi Makinde, who addressed the press after the meeting, explained that council members agreed on the importance of fostering national understanding and consensus regarding the reforms.

“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills,” Makinde stated, adding that the decision was made in the country’s best interest and underscoring the necessity for wider public engagement.

The bills in question, endorsed by the Federal Executive Council, aim to modernize Nigeria’s tax system by streamlining processes, enhancing efficiency, and reducing redundancies across the nation’s tax administration.

The reform package was crafted following a comprehensive review of tax laws initiated by President Tinubu’s administration in August 2023.

However, NEC’s recommendation comes amid mounting concerns. Days earlier, the Northern Governors’ Forum openly opposed the reform bills, specifically criticizing the proposed derivation-based model for Value-Added Tax (VAT) distribution.

In a communiqué presented by Gombe State Governor Muhammed Yahaya, the forum argued that the model could harm the interests of northern states and other regions.

NEC’s appeal to withdraw the bills for more inclusive discussions marks a pause in the legislative process and signals the administration’s willingness to address regional and public concerns over the proposed tax framework.

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