Pushback against tax reform bills politically motivated, says Abba Moro

Abba Moro, minority leader of the senate, says the criticisms against the proposed tax reform bills are politically motivated.

The Benue south senator spoke on ‘The Morning Show,’ an Arise Television programme, on Thursday.

Since their introduction by President Bola Tinubu in early October, the bills have sparked significant debate across the country, with strong opposition coming from northern stakeholders.

Critics, particularly in the northern region, have raised concerns over the economic impact of proposed changes to the value added tax (VAT) distribution system, arguing that it could disproportionately affect their states.

One of the key issues is the proposed shift to a VAT distribution model that factors in derivation, a system critics say could disadvantage northern states.

Some have argued that such a move could be unconstitutional, given that the current VAT distribution is based on principles of equity, equality, and population.

Moro, however, defended the reforms, insisting that they were introduced with the best interests of the nation in mind.

He noted that many of the objections to the bills stemmed from a lack of understanding, exacerbated by political rhetoric.

“It is assumed that if you introduce derivation in sharing VAT now, you’re going against the constitution because there is no constitutional provision for that,” Moro said.

The lawmaker added that, based on social media and recent publications, the entire debate has been politicised in an attempt to create a divide between the north and south.

“I dare want to say that it is the politicisation of this bill that is, in the first place, responsible for where we are now. So, I don’t want to look at the political side of it,” he said.

“I think that by the time further advocacy and sensitisation is carried out, very many people — who out of lack of understanding apparently may have been kicking against this bill — will come to realise that the bill means well for the entirety of Nigeria.”

BACKGROUND

On October 3, Tinubu asked the national assembly to consider and pass the Nigeria tax bill, Nigeria tax administration bill, Nigeria Revenue Service establishment bill, and the Joint Revenue Board establishment bill.

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