The Presidency has responded to Bauchi State Governor Bala Mohammed’s criticism of the recently proposed Tax Reform Bills, stating that the bills will boost production in Nigeria.
Speaking on Sunrise Daily on Channels TV on Wednesday, Daniel Bwala, the Special Adviser to the President on Policy Communication, said the tax reform bills will encourage production.
He said “The [Bola Tinubu] government has communicated in very clear terms to the governors and stakeholders and all who care to listen that the Tax Reform bill is actually going to help your own state and not anti-your state. But the Tax Reform bill is also encouraging production. You have interrogated leaders on the need to build a production-based economy and not one that is dependent on stamps from the federal government. And that is the direction we all are looking.”
He noted further, “Instead of scapegoating and blackmailing the president, the governors should talk to their lawmakers. He [the President] has presented the bill to the National Assembly. It is the National Assembly that will do what they need to do in the process of the passage. The tax reform bill primarily benefits the common man.”.
Back story
On December 26, during his critique of the tax reform bills, Mohammed, who also serves as the chairman of the Peoples Democratic Party (PDP) Governors’ Forum, alleged that the proposed reforms were biased in favor of a particular region. He described the bills as tantamount to “calls for anarchy” and cautioned that President Tinubu would witness “our real color” if the legislation were enacted.
- However, speaking during Channels Television’s 2024 year-end review programme on Tuesday, the Bauchi governor clarified that his remarks were made with good intentions and in the interest of national discourse.
“I cannot be threatened as a governor. I stand by my comments. They are not meant to malign, insult, or do anything to the contrary other than mean well,” he said.
- Mohammed criticised the presidency’s approach to the tax reform debate, urging it to avoid arrogance and listen to the concerns of Nigerians.
- He warned that the proposed tax bills if passed, could have “concomitant effects” that could threaten the survival of states and further impoverish citizens.
“We believe that as the leader of the federation and all other federating units, they should listen to us, not act arrogantly, or show impunity as though they can proceed regardless,” he added.
He described the presidency’s stance as “undemocratic” and noted that “even those with military backgrounds have historically addressed public concerns on contentious policies”.
What you should know
- The tax bill, analysts say, provides relief for low-income earners and small businesses as they would be exempt from income taxes and value-added taxes.
- However, it is facing strong resistance from the Northern part of the country, where political stakeholders say it would not benefit the region.
- National Assembly deliberations on the bills were suspended following pressure and opposition from the Northern governors.
