Northern Governors Rally Lawmakers Against Tax Reform Bills

Northern states governors have asked members of the National Assembly (NASS) from the region to unite against the Tax Reform Bills sent to the federal legislature for passage by President Bola Tinubu.

The governors said they have not shifted their earlier position on the matter because the proposed law would have dire economic consequences on the region.

When contacted on the next move of the governors on the issue, Gombe State governor and chairman of the Northern States Governors’ Forum, Inuwa Yahaya, said the position of the state chief executives on the Tax Reform Bills remains unchanged.

Through his spokesperson, Isma’ila Uba Misilli, the governor told LEADERSHIP Weekend that the northern governors collectively opposed the bills due to concerns that they could have significant economic repercussions for northern states, particularly impacting revenue generation, economic growth and the livelihoods of the citizens.

He said, “Any tax policy should be fair, inclusive and considerate of the diverse economic realities across the country.

“Recall that in the communiqué issued after the Kaduna meeting, and read by Governor Muhammadu Inuwa Yahaya, the chairman of the Northern States Governors’ Forum (NSGF), it was clearly stated that the forum notes with dismay the contents of the recent Tax Reform Bills forwarded to the National Assembly.

“The proposals are seen as detrimental to the interests of the North and other sub-national entities, especially the proposed shift to a derivation-based model for distributing Value Added Tax (VAT). This is because companies remit VAT based on the location of their headquarters or tax offices rather than where goods and services are actually consumed.”

He however expressed the confidence that their representatives at the National Assembly would thoroughly examine those bills and give due consideration to the concerns raised.

“We trust that the members of the National Assembly will take the necessary actions to protect the interests of our states and the citizens.”

In the same vein, the Borno State government has said it is behind the decision of the governors from the 19 States of the North on rejection of the Tax Reforms Bill.

The position of the state government on the bill was disclosed to our correspondent in Maiduguri, the state capital by the special adviser to the governor on media, Alhaji Dauda Iliya.

Iliya said, “ Borno State government is together with the Northern Governors’ decision on the rejection of the Tax Reforms Bill recently sent to the National Assembly by President Bola Tinubu.”

On whether the state governors would take legal and legislative measures against the bill, the Kano State commissioner for Information, Halilu Baba Dantiye, said, “It is not a fight between the governors and the president but a matter of perception.”

He said the governors in unison stand against the Tax Reform Bills and advised the presidency that more time should be allowed for more consultations.

Dantiye said, “It is not a fight against the president; they are not in a fight. It is an issue of perception and the governors want more time to do it so that there can be more consultations.

“The governor of Kano State, Abba Kabir Yusuf, has plans for the grassroots and the people need to be considered when such things are going to take place.

“It is not a fight that will make the governors and the legislators unite against the president; there is no call for that.”

Dantiye further said the opposition to bills was collectively taken by the northern governors and as such, any reaction regarding that issue should collectively be done rather than independently as a state.

Also, the spokesperson to the governor, Sanusi Bature, told our correspondent via a text message that he was not permitted to speak on the matter.

Relatedly, the Bauchi State government has insisted that the tax bills were against the economic interest of the North and its people, hence, the need to reconsider them in the interest of national socio-economic harmony and prosperity.

Governor Bala Mohammed had earlier said the North was too large to be put at a disadvantage by the bill considering the huge potential of the region and its people.

When contacted to speak on the issue, the state commissioner for Information and Communication, Usman Dan-Turaki, said the position of the state government remains as explicit as captured by Governor Bala Mohammed.

He said the Bauchi government, like every other northern state, is against the tax bills and would remain committed through possible means to see a way out of the controversy.