The National Economic Council (NEC) has recommended withdrawing the Tax Reform Bill currently before the National Assembly, citing disagreements and concerns from various groups.
This decision was announced by Oyo State Governor, Seyi Makinde after the NEC meeting on Thursday.
Makinde stated: “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills.
“We saw the gap and decided that there is a need for a wider consultation.”
The Tax Reform Bill aims to improve Nigeria’s tax administration by increasing efficiency and reducing duplication within the nation’s tax system.
READ ALSO: Presidency Defends Proposed Tax Reform Bills Amid Northern Governors’ Opposition
President Bola Tinubu and the Federal Executive Council had approved new policy measures in August 2023, leading to four executive bills being considered by the National Assembly.
Recall that the Northern Governors Forum, comprising 19 states, opposed the bill, citing concerns over the proposed Value Added Tax (VAT) sharing template.
They argued that the new template would disadvantage the North, as companies remit VAT based on their headquarters location rather than where goods and services are consumed.
The NEC’s decision follows criticisms from various groups, including the Pan Niger Delta Forum (PANDEF), the Middle Belt Forum (MBF), and the Arewa Civil Rights Movement (ACRM).
These groups have expressed concerns over the bill’s potential impact on revenue generation and economic development.
