Why North must back Tinubu’s tax reform bills — Lawmaker

A member of the House of Representatives from Kano State, Abdulmummin Jibrin, has urged the north to support the tax reform bills proposed by President Bola Tinubu.

Mr Jibrin stated this on Sunday while appearing on Politics Today, a political programme on Channels TV.

The legislator, a member of the New Nigeria People’s Party (NNPP), said the bills contain several buffers that will benefit the north.

“The bills include protective measures, or ‘buffers,’ designed to prevent any negative impact on northern states.

“These buffers are important in safeguarding the interests of the northern region. They ensure that, even as the tax system is reformed, the North will not face any adverse consequences.

“It’s important for us to understand that these measures are specifically aimed at protecting our region while we engage in this necessary reform,” he said.

Background

Two months ago, President Tinubu sent four tax bills to the National Assembly for approval. They are the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

However, the bills have received mixed reactions. The Northern Governors Forum, during a meeting last month, stated that some aspects of the bills, particularly the VAT components, are against the interests of the north. Consequently, they directed their lawmakers in the National Assembly to reject the bills.

One of the bills seeks to change the sharing formula of the Value Added Tax by reducing the federal government’s share from 15 per cent to 10 per cent. However, the bill includes a caveat that the allocation among states will factor in the derivation principle.

Additionally, the National Economic Council, which comprises the governors and is chaired by Vice President Kashim Shettima, also urged the president to withdraw the bills from the National Assembly for further consultations.

However, the president has insisted that any differences should be resolved in parliament.

In the Senate, Ali Ndume representing Borno South, has been the primary opponent of the bills.

During a recent interview on Channels TV, he asserted that the bills are “dead on arrival” without proper consultation. He conceded, however, that he has yet to read the contents of the bills.

Not much progress has been made on the bills, as they are still at the first reading stage in both chambers.

Last month, the finance committees of both chambers met with the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, to discuss the bills.

Critics are yet to read the Tax Bills

Speaking on the bills, Mr Jibrin, a former chairman of the House Committee on Appropriations, said the main challenge with the bills is a perception crisis because many see President Tinubu as the “tax man”.

He noted that many of those opposing the tax bills have yet to read the contents to make an informed decision.

“There’s a crisis of perception here. People hear ‘tax reform’ and immediately assume it will negatively impact them, without ever taking the time to review the details of the bills. Many of the critics haven’t even looked at the bills closely.

“President Tinubu is seen as a tax and revenue-focused person, and because of that, when you hear discussions about the bills, people jump to conclusions. I urge everyone, including lawmakers, the media, and the public, to engage with the actual content of the bills before making judgements.

“It’s easy to assume, but if you look at the bills, you’ll see that they’re not about imposing new taxes on the common man. Instead, they address systemic issues and propose reforms that benefit the broader society,” Mr Jibrin said.