Coalition of Northern Groups (CNG) has called for immediate suspension of tax reform bills to allow wider engagement and collective inputs of critical stakeholders and Nigerian citizens towards implementing a more equitable, transparent, and sustainable Tax administration reform for the country.
The group in a press conference on Monday delivered by Kogi State Coordinator, Salau Enesi Habib said the tax reform bills represent structural shift that could deepen economic inequalities between Northern and Southern Nigeria, noting that while Lagos consolidates its financial dominance, Northern Nigeria would risk losing vital resources critical for its development.
“The tax reform raises significant concerns about the economic implications for Northern Nigeria while amplifying advantage for states like Lagos. Northern States that have relied heavily on equitable VAT redistribution risk losing up to 30 to 40 percent of their current allocation and thus severely affecting States like Kogi.
“The derivation principle focuses on rewarding where VAT is effectively paid not where goods are produced. For example; Kogi State is known for high deposits of mineral resources, such as Iron ore, Kaolin, Coal, Feldspar, limestone, and a host of others, those products are processed into finished products in industries outside the State, and this skews the benefits of the state with proposed Tax Reform.
He noted that one of the developmental objectives of nations is to have balanced development and when the process of tax receipt will benefit certain regions in high proportion will negate the idea of balanced national development.
He therefore called on government at all levels to focus on industries that can improve the economy of states and the country at large by securing and preventing illegal mining operations in the local communities where mineral resources are deposited.
He therefore called on the Kogi State Governor, Alhaji Ahmed Usman Ododo, to support the drive of the group to stop the bill from sailing through, saying that the government’s current support for the tax reform bill will not be in the best interest of the state.
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