The Coalition of Northern Groups (CNG) has reiterated that the tax reform bills proposed by the current administration will negatively impact some parts of the country, especially the north if it is passed into law.
Recall that the Federal Government had sent a tax reform bill to the National Assembly for passage. The bill which has passed the second reading is currently generating concerns, especially, from the northern part of the country.
The CNG National Coordinator, Comrade Jamilu Aliyu Charanchi, while joining the Northern Governors and other groups from the region to reject the bill, said reforms will certainly disproportionately and negatively impact most parts of the country generally and the North specifically.
Charanchi while addressing journalists on Tuesday in Abuja, said the CNG rejects these tax reforms in their current forms, as they represent a shortsighted approach to revenue generation.
“The CNG, after carefully reviewing the proposed tax reforms, in their current form, believes that it would aggravate our existing challenges, perhaps with only three states and the FCT to benefit out of our collective difficulties”, he said.
“The CNG observed that these so-called reforms will certainly disproportionately and negatively impact most parts of the country generally and the North specifically, in the light of proposed defunding of important pivotal institutions like TETFUND, NITDA, and NASENI, and shift the economic burden onto already struggling populations.
“The Nigeria Tax Bill introduces sweeping reforms that consolidate multiple levies on companies’ profits into a single “development levy,” which will progressively decline from 4% in 2025 and 2026 to 2% by 2030. This reform poses significant threats to critical sectors, particularly education, technology, and industrialization”, he noted.
The CNG however recommended that the government should publish comprehensive data to justify the proposed VAT derivation formula, enabling citizens to evaluate its fairness based on concrete numbers compared to the existing system.
The group further recommended that “Transparency in this matter is non-negotiable. If the data clearly demonstrates increased equity, it will bolster public trust in the reform.
“However, if such projections cannot be provided, it is prudent to maintain the current VAT revenue-sharing formula while implementing the proposed location-based collection system.
“This approach allows the government to evaluate the real impact of the new collection method, particularly on the current 20% derivation share.
“Agencies like TETFUND, NITDA, and NASENI must be exempted from defunding or restructuring. These institutions are pillars of Nigeria’s educational, technological, and industrial progress, and undermining their financial base will derail critical national development objectives.
“The government should halt the planned VAT increases and explore alternative revenue sources that do not add to the current hardships of ordinary Nigerians”.
CNG also noted that the reforms must undergo thorough consultations with all sub-nationals and key stakeholders, including civil society and educational institutions to ensure a consensus-driven approach.
“Based on the above analysis, the CNG categorically rejects these tax reforms in their current forms. They represent a shortsighted approach to revenue generation that sacrifices equity, inclusion, and sustainability.
“This administration, with its pseudo-reforms and devilish policies, remains the most wicked, heartless and demonic in the political evolution of Nigeria.
“Since its inception, the Government has created poverty and misery, expanded frontiers of deprivation, and excruciating economic policies, entrenched inhumane and gangster-like approach to civil dissidence and complete trial-and-error in economic management.
“The CNG reminds the Government that through their fake and devil-like reforms in the economy, fuel-subsidy removal, and energy sector, the administration has bequeathed disastrous conditions for Nigerians that rich and middle class have been turned to paupers while poor Nigerians have been turned to surviving in hell-like situations,” the CNG added.
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