The Coalition of Northern Groups (CNG) Kaduna State Chapter, has kicked against the current Tax reform Bill which is before the National Assembly, calling for wider consultations before legislation.
In a communique issued to newsmen after a town hall meeting by Comrade Muhammed Sanusi Ali unbehalf of 134 Kaduna Based Civil Society Organizations / Non Governmental Organizations read in part,
“The proposed tax reform bill is unanimously rejected due to its lack of inclusivity and potential negative impact on various regions and sectors. The reforms must undergo thorough consultation with all regions and key stakeholders, including civil society organizations, educational institutions, and local governments, to ensure a consensus-driven and equitable approach.
“Increased Tax Burden: it was argued that the proposed national fiscal policy may lead to an increased tax burden on citizens, particularly those in lower-income brackets. If not carefully calibrated, these changes could exacerbate existing inequalities and hinder economic mobility.
“Especially as Nigerians are still grappling with the dual effect of subsidy removal and unification of the exchange rates, which have made the prices of goods and services to rise in a disproportionate manner that has never been experienced in the country.
“Discontent and Social Unrest: If the reforms are perceived as unfair or overly burdensome, they could lead to widespread discontent and a loss of trust in government institutions. History has shown us that economic distress often fuels populist sentiments, which can destabilize societies and hinder progress.
“Taxation in the midst of poverty: If you say that it is corporate organizations that will pay higher taxes and not individuals, where will you be when the companies will increase the prices of their goods and services factoring VAT? Do you have a price control mechanism? All these will further result into higher income inequality.
“Agencies such as TETFUND, NITDA, and NASENI are essential for Nigeria’s educational, technological, and industrial advancement. The town hall demands an immediate halt to any plans to defund or restructure these institutions.
“Their funding and mandates should be strengthened to enhance their capacity to address critical challenges, including research, innovation, and capacity building, which are vital for sustainable national development. Additionally, the proposed NELFund must be discontinued as it risks indebting future generations with unsustainable revolving credit schemes.
“The tax reform bill contains ambiguous terms that need clarification to avoid misinterpretation. For instance, a precise definition of “derivation” must be provided to ensure equitable resource allocation. The term “family wealth” must be clearly defined to prevent undue taxation on family assets or inheritance.
“These recommendations aim to ensure fairness, transparency, and inclusivity in Nigeria’s economic and governance frameworks, while prioritizing the well-being and interests of all citizens, especially those in Northern Nigeria.
“The town hall recommends that all banks and Telecommunication companies to relocate their corporate headquarters to Abuja and remit their revenues directly to the Federal Government to ensure equitable distribution of benefits. All Northern Governors, business leaders, and organizations are urged to exclusively engage banks that comply with this recommendation in all financial transactions.
“Reopening of Land Borders. The continued closure of land borders has had a devastating impact on the economy and livelihoods of citizens, particularly in border communities. The town hall urges the Federal Government to reopen land borders immediately to ease economic hardship, promote trade, and reduce the burden on struggling Nigerians.
“Reduction of VAT to 3%: The Federal Government should halt the proposed VAT increases and instead reduce the current VAT rate to 3%. This reduction will provide relief to citizens and businesses while encouraging economic activity. Alternative revenue-generating strategies must be explored to avoid placing additional financial pressure on ordinary Nigerians.
“Rejection of Increased Telecommunication Tariffs. Any attempt by telecommunications companies to increase tariffs will be firmly opposed. The government and regulatory authorities must ensure that telecommunications remain affordable for all Nigerians, given its critical role in economic and social connectivity.
