States of the federation were split over the controversial Tax Reform Bills before the National Assembly. While some are in support, many are against it entirely, while others are kicking against some sections. A number of states said they are still studying the bills to take a stand.
The division among the states came as the Presidency debunked insinuations that the Tax Reform Bills will make Lagos or Rivers more affluent and impoverish Northern states; and Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, backed the move, noting that it’s small business friendly.
States that are in support of the tax reform include Kogi, Benue, Delta and Ekiti
Those against include Borno, Nasarawa and Kano.
Anambra, many South-South states and Plateau said they are still studying the document.
Meanwhile, South-South Leader, Chief Edwin Clark has warned that if not properly handled, the move will create more problems for the country.
This was as Abia North Senator, Orji Kalu criticised the Federal Government for failing to involve key stakeholders in the ongoing discussions over the proposed tax reform bills with Senator Seriake Dickson (PDP, Bayelsa West), expressing confidence that the Tax Reform Bills will become law despite opposition from some quarters.
Kano Assembly Rejects Bills
In Kano, the House of Assembly, yesterday, rejected the tax reform bills following deliberations at its plenary session presided over by Speaker Ismail Jibrin Falgore.
The majority leader of the House and member representing Dala Constituency, Lawan Husseini, in a motion of urgent public importance presented the need for northern lawmakers and the Conference of Speakers not to allow the bill to see the light of the day.
According to him, “the bill, when passed into law, will not be in favour and betterment of the people in the North, as such, the actions of the Senate to pass it is condemnable.
“We view it as a calculated plan to sabotage the economy and even increase hardship and impoverish the region in general.
“The pattern or arrangement in that law to allocate VAT is worrisome because some states will suffer and states like Lagos would take major share of that collection because most of the headquarters of Nigerian banks, telecommunications companies, Dangote and BUA as well as other multinationals are situated in Lagos. So, 80 per cent of the VAT collected in Nigeria will be to Lagos and its environs whereas some other states in Northern Nigeria will take a minimal share”.
The Member representing Doguwa constituency, Salisu Mohammed, and the Member representing Garko constituency, Murtala Kadage supported the motion.
Delta, Benue, Kogi back bills
Delta, Kogi and Benue state governments are in support of the bills.
Delta State Commissioner for Economic Planning, Mr. Sunny Ekedayen said: “We will support anything that will further the interests and development of the country; and anything that will enhance further and deepen development”.
In Benue, the Commissioner for Finance, Budget, and Economic Planning, Mr. Michael Oglegba, expressed the state’s backing for the Federal Government’s effort to enhance revenue through taxation, saying: “The Tax Reform Bill is largely a good bill. We support the effort of the Federal Government to grow tax revenues”.
In Kogi the Ministry of Finance, Budget, and Economic Planning organized a one-day citizens’ engagement and interactive session on the Tax Reform Bills.
The state Commissioner for Finance, Budget, and Economic Planning, Idris Asiru, stated that the initiative is to foster collaboration between government and citizens, ensuring that the voices of the people are heard in the formulation of the bills, and demonstrates the government’s commitment to transparency, accountability, and inclusive governance under the administration of Governor Usman Ododo.
Asiru encouraged citizens to participate in the ongoing consultation process, stating that the collaborative approach will ensure that the final bills reflect the needs and aspirations of Kogi people.
Chairman of the Kogi State Internal Revenue Service, Sule Enehe explained that the proposed tax reform bills are designed to streamline tax administration, reduce the burden on low-income earners, and promote economic growth.
Speaking at the programme, the National Deputy Publicity Secretary of the All Progressives Congress (APC), Hon. Duro Meseko, expressed the party’s support for President Tinubu and his economic policies.
Stand of South-South states
The South-South states may not be against the tax reforms bill given the region’s age-long agitation for fiscal federalism.
In Bayelsa State, the Commissioner for Information, Orientation & Strategy, Mrs. Ebiuwou Koku-Obiyai said she will have to get in touch with the governor, who is on leave, for the state’s position.
But a top official of the government, who spoke anonymously said: “There is nothing wrong with the tax reforms bill before the National Assembly. I think what the President Tinubu-led Federal Government is trying to to do is to introduce true fiscal federalism through the back door which is good for the country”.
In Cross River State, the Chief Press Secretary to the Governor, Nsa Gill said: “On the surface, we are in tandem with the tax reform bill. We are with the president but as a state we are still studying the 24-page document”.
The Commissioner for information, Dr. Erasmus Ekpang, said: “We know there are one or two complaints, we have also seen so many areas that favour our dear state, but we need ample time to study the document properly before taking a position on the bill”.
In Rivers State, the government said it is not in a hurry to comment on the bills.
The Commissioner for Information and Communication, Joe Johnson said he was yet to have the opportunity of studying the bill and therefore could not speak on the matter yet.
In Akwa Ibom, a senior government official said: “What’s the hurry? A bill is a process. We won’t delight in media debate. When it is thrown to public scrutiny, Akwa Ibom State Government will air its views and input through the appropriate channel”.
The senator representing Akwa Ibom North West Senatorial District, Dr Ekong Sampson, assured that current tax reforms, when passed into law, would benefit Akwa Ibom State in a number of ways.
He said: “In respect of the Reform Bill, there are areas of profound interest to Akwa Ibom State. For instance, why should oil companies operate on our shores but pay their tax elsewhere?
“The Senate will subject the Tax Reform Bill to full public enquiry. I assure that the Senate will spare no effort to ensure that Akwa Ibom has its inputs into the bill. I will make sure that Akwa Ibom’s interest is protected and this reflects the opinion of the senators from Akwa Ibom State, including Godswill Akpabio, the Senate President who is our leader, to ensure that Akwa Ibom interest is protected as the Senate will subject the bill to full public enquiry”.
Edo govt mum on new tax policy
In Edo State, there was no official response from the state government. A very top senior official volunteered: “You know this is a policy matter, the governor must be consulted, he was a senator before becoming governor but he needs to study the situation very well before responding“.
Plateau begins the discussion, to support bills if favourable to citizens
In Plateau, the government has started the discussion on the controversial bills, saying the reform would be supported if it adds value to the Plateau people.
The State Commissioner for Information and Communication, Musa Ashoms said: “Anything that will plunge our people into hardship will not be a welcome development. If the reform will be beneficial to our people, we will key into it, but if it will further stretch our people into more hardship, we will join our voice to say no to it. Our government is pro-people and advocates for things that will advance the development and welfare of the people.
“We’ll look into the matter; we just had an interface with our legislators irrespective of political parties; the tax reform will be supported if it is meant to favour our people”.
Ekiti backs tax reform, faults committee on consultation
The Ekiti State Government threw its weight behind the tax reform bills but lamented inadequate consultation by the presidential committee
In a chat with Vanguard, the Commissioner for Finance and Chairman, Forum of State Commissioners for Finance in Nigeria, Akintunde Oyebode, faulted the Chairman of Presidential Committee on Fiscal Reform and Tax Reform, Taiwo Oyedele, for not consulting state governors and commissioners before going to the Senate.
His words: “I agree that our tax laws are in need of reform. This law is a century old because it was handed over to us by the colonial administration. The question about reform is undeniable. The reform has various levels of engagement and I think the committee also did a bit of engagement but they could have done more by exposing the draft bill to governors, and commissioners forum before it went to the National Assembly for consideration”.
Oyo has no position yet — CPS
The Chief Press Secretary (CPS) to Governor ‘Seyi Makinde of Oyo State, Dr. Sulaimon Olanrewaju, said that the state government currently has no official stance on the controversial tax reform bills. However, he said that the state government will continue to monitor the developments surrounding the bills and engage in discussions with relevant authorities when necessary.
Move is small-business friendly — ASBON
Speaking on the issue, President of the Association of Small Business Owners of Nigeria (ASBON), Dr Femi Egbesola, expressed the full support of micro, small and medium enterprises (MSMEs) operators for the proposed tax reform bills.
His words: “We in the MSME ecosystem strongly support the proposed tax reform bill. It’s pro-poor and small business friendly.
“Exemptions of low income earners and small businesses with N50 million or less annual turnover from tax is highly welcomed.
“We also appreciate the exemptions of many products, foods and agriculture, medicals, transportation etc from the VAT list.
“We believe this will strengthen the purchasing power and disposable income of the average Nigerians, leading to lower prices, lower inflation rate, more jobs and higher competitiveness of our products and services. Taxing the rich to support the poor and vulnerable is the global standard, bringing about fairness and equality.
“The idea of the central point of filing, paying and dispute resolution, the creation of the tax ombudsman, the disintegration of the former tax structures to create new and sustainable structures, the equity distribution of government tax revenues and VAT among the federal government and the sub-nationals, with larger percentage accruable to states generating bigger tax incomes, the harmonization of the many taxes, and more, are all great answers to our age long prayers”.
