[Press Release] Even as the members of the National Assembly are divided along regional cleavages over the contested Tax Reforms Bills introduced by President Bola Tinubu-led administration, the Northern governors and Senators are called upon to focus their attention on economically liberating, empowering the masses of the people of the north to become producers and consumers of goods and services so there would be no need crying over sharing formula of revenues from taxation especially from the value added tax.
Making the clarion call is the pro-democracy and social justice advocacy group: HUMAN RIGHTS WRITERS ASSOCIATION OF NIGERIA (HURIWA) which also appealed to Nigerian Senators and House of Representatives members to engage in merit-based debates around the new tax reform bills of the current administration so as to ascertain the long-term impacts, merits or demerits or otherwise and not to continue to ignite ethnic and regional tensions over economic matter of reforming the tax system that is scientific, evidence-based, empirical and therefore logical.
“Those who oppose the bills should list out their reasons backed up by scientific body of evidence and with statistics and not on ethnic or regional sentiments.”
HURIWA said the conversations around the proposed tax reform bills shouldn’t be reduced into convoluted political theatrics but rather those who are afraid of being shortchanged if the distribution system of value added tax benefits states that the citizens consume more taxable products than others who do not, these opponents, particularly our Northern political elites are to be blamed for failing to economically empowering and liberating their people so in that process, the masses would be in the financial position to consume more taxable goods and thereby generate heavy financial windfall for their states.
HURIWA recalled that the President had, on September 3, transmitted four tax reform bills to the National Assembly for consideration just as the the envisaged government’s tax reforms stemmed from the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele, for the review of existing tax laws.
The bills are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
HURIWA recalled that the major burning issue around the debate is the proposed paradigm shift to a derivation-based model for Value Added Tax distribution, which would allocate tax revenue to the states where goods and services are consumed, rather than where companies have their headquarters.
HURIWA however recalled that without adducing superior scientific facts and figures, the bills were rejected outrightly by the 19 northern governors and traditional rulers based on unscientific reasons.
The governors, under the aegis of the Northern Governors’ Forum, rejected the new derivation-based model for VAT distribution, insisting that the contents of the bills did not align with the interests of the North and other subnational entities.
Similarly, the National Economic Council, headed by Vice-President Kashim Shettima, recommended the bills’ withdrawal to allow for wider consultations and consensus building. Report says President Bola Ahmed Tinubu insisted that the National Assembly should be allowed to treat the bills.
While the bills have not been presented for a second reading where the principles of the bills will be debated, some lawmakers have expressed divergent views.
Senator Ali Ndume (APC, Borno South) had in a television interview opposed the bills and vowed to mobilise other lawmakers from the north against them.
Speaking recently Senator Ogoshi Onawo of Nasarawa South Senatorial District kicked against the bills, saying it was unfair for the government to continue imposing taxes on Nigerians who were battling economic hardship.
HURIWA however condemns the ETHNICIZATION of the debate on the proposed tax reform bills especially by Northern political elites who centre their opposition around mundane political and unscientific issues rather than confront the issue with facts, figures and science.
“As for us in the organised human rights community in Nigeria, we sincerely hope that the debates should be healthy, robustly focused on evidence, benefits, merits and demerits. And whereby any aspect of the proposed tax reform bills would undermine the existence of the absolutely impoverished Nigerians, then those aspects can be tinkered with so the people aren’t taxed to their untimely deaths. But opposing the tax reform bills based on regional interest and not on national interest, is absolutely uncalled for. We must emphasise things that unite us than often going back to our mundane political cleavage in pursuit of ethnic aggrandisement.”
Comrade Emmanuel Onwubiko,
National Coordinator,
HUMAN RIGHTS WRITERS ASSOCIATION OF NIGERIA (HURIWA). November 10th 2024.
