Some experts from northern Nigeria have thrown their weight behind the tax reform bills proposed by President Bola Tinubu, saying they will boost the economy of the North.
The tax reform bills include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill (meant to repeal the Federal Inland Revenue Service, FIRS, Act and create the Nigeria Revenue Service, NRS) and the Joint Revenue Board Establishment Bill.
Northern leaders, including traditional rulers and the Northern Governors Forum, NGF, are kicking against the tax reform bills, claiming it would impoverish the North.
However, the northern experts, who spoke as resource persons at a town hall meeting held in Abuja on Monday, refuted claims that the bills are anti-North. Rather, they stressed that the bills would aid the development of the region.
The town hall meeting, chaired by Prof Malfouz Adedimeji, Vice Chancellor African School of Economics (Pan-African University of Excellence, Abuja), was organised by the Coalition of Northern Civil Society Groups in collaboration with Concerned Northern Professionals.
Speaking at the event, Dr Mustapha Abubakar, a chartered accountant, said the tax reform bills are designed to expand Nigeria’s tax base, improve compliance and establish sustainable revenue streams.
“The bills are expected to have a positive impact on the Northern economy, potentially increase government revenue, reduce poverty, and promote economic growth and development.
“One of the key benefits of the bills is the potential to increase revenue generation for state and local governments in the north.
“The proposed reduction of VAT distribution to the federal government from 15% to 10% and the increase in the share of state governments from 50% to 55% will result in more funds being available for development projects in the North.
“This is expected to lead to improved infrastructure, education, and healthcare in the region. Another significant benefit of the tax reform bills to the North is the potential to promote economic growth and development.
“The proposed reduction of company income tax from 30% to 25% over two stages will make it easier for businesses to operate in the north, leading to increased investment and job creation,” the accountant said.
Also speaking at the meeting, another expert, a staff of the Kano State Internal Revenue Service, Barrister Maxwell Batusan, noted that the bills will promote synergy between the federal, state and local governments.
“The Joint Revenue Board Establishment Bill intends to establish the Joint Revenue Board, which will streamline tax administration and promote fairness and equity in the distribution of revenue.
“Additionally, the exemption of small businesses with annual turnovers of N50 million or less from paying income tax will provide a boost to entrepreneurship and innovation in the region.
“Overall, the tax reform bills have the potential to unlock the economic potential of the north and promote sustainable development in the region,” Batusan said.
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms Taiwo Oyedele had on Monday listed 10 benefits of the tax reform bills.
According to Oyedele, low-income earners (N83,000 monthly) will be exempt from the Pay As You Earn, PAYE, tax.
Similarly, he said PAYE will be reduced for those earning less than N1.7 million per annum.
Oyedele noted that households and individuals will enjoy zero value-added tax on food, health care, education, and transportation.
North will benefit from tax reform bills — Northern experts
