Northern governors oppose proposed amendment to VAT distribution, ask n’assembly to reject it

The Northern States Governors Forum (NSGF), representing 19 northern states, has collectively rejected the proposed tax amendment bill.

Following a joint meeting with the northern traditional rulers council at Kaduna’s government house on Monday, the governors issued a communique, read by Muhammadu Inuwa Yahaya, NSGF chairman and Gombe state governor.

On October 13, President Bola Tinubu asked the national assembly to consider and pass four tax reform bills.

The proposed legislations are the Nigeria tax bill, tax Administration bill, and Joint Revenue Board establishment bill.

Tinubu also seeking to repeal the law establishing the Federal Inland Revenue Service and replace it with the Nigeria Revenue Service.

The governors urged the national assembly to reject any legislation that may harm the region’s interests, calling for equitable and fair implementation of national policies and programmes to prevent marginalisation of any geopolitical zone.

“Forum notes with dismay the content of the recent tax reform bill that was forwarded to the national assembly,” the communique reads.

“The contents of the Blare against the interests of the north and other sub-nationals especially the proposed amendment to the distribution of Value Added Tax (VAT) to Derivation-based Model.

“This is because companies remit VAT using location of their headquarters and tax office and not where the services and goods are consumed.

“In view of the foregoing, the forum unanimously rejects the proposed Tax Amendments and calls on members of National Assembly to oppose any bill that can jeopardise the well-being of our people.

“For the avoidance of doubt, the northern governor’ 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 farness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalised.”

‘STATE, FG WORKING TO CUSHION EFFECTS OF HARDSHIP’

On the present economic hardship affecting the country, the governors appealed to all citizens to remain calm, assuring that the state and federal governments are working on measures to cushion the effects of the hardship.

The governors also underscored the essential role of traditional institutions in maintaining peace and security, urging cooperation with security agencies to address issues like banditry, cattle rustling, communal clashes farmers/herder clashes and other forms of criminality.

‘ADDRESS VANDALISATION OF ELECTRICITY INFRASTRUCTURE’

The forum also addressed persistent electricity blackouts across northern states, calling on the federal government and relevant agencies to urgently address issues caused by the vandalisation of electricity infrastructure.

“This matter not only underscores the vulnerability of critical infrastructure, but also the need to build additional transmission lines and diversify our energy supply so as to better connect our region and improve our energy resilience,” the governors said.

According to the NSGF, the north holds immense agricultural potential, which, if fully developed, could alleviate hunger and boost economic growth.

“To achieve this, we resolved to provide adequate support to our farmers, including access to financing, modern farming techniques and infrastructure such as roads and irrigation systems,” the forum said.

“Agriculture should not only be seen as a means to feed our people but also as a catalyst for industrialisation and job creation across the region.

“That can be achieved through re-industrialisation of the North especially by reviving the textile value chain and development of other agro-allied industries.

“Forum commends His Excellency, the President and Commander-In-Chief of the Armed Forces of the Federal Republic of Nigeria for the reform initiative in the livestock sub-sector and agreed to provide the necessary political will and commitment to ensure the success of the federal government livestock development initiatives.

“The forum also agreed to sustain engagement and cross-fertilization of ideas with the Presidential Livestock Reforms Implementation Committee to achieve greater results.

“Forum acknowledges the fact that climate change has greatly affected our environment resulting in the recent flood incidents in many parts of the north and therefore resolved to partner with the federal government and other stakeholders to build irrigation infrastructure like canals and waterways to divert excess water and channel them towards irrigation activities, thus enhancing rural livelihoods and safeguarding food security.”

The meeting was attended by governors from Zamfara, Borno, Bauchi, Adamawa, Kogi, Yobe, Gombe, Kaduna, Nasarawa, and Kwara, while Kebbi, Taraba and Niger were represented by their deputies and secretaries to their state governments (SSGs).