Governor Abdullahi Sule of Nasarawa State has voiced concerns about the ongoing debate over the proposed tax reform bills before the National Assembly, stating that many critics of the bills lack a fundamental understanding of Value Added Tax (VAT) and its mechanisms.
Speaking on Monday during an interview with Arise Television, Governor Sule acknowledged the initial reservations expressed by some northern governors, including himself, regarding aspects of the tax bills.
However, he noted that recent clarifications from President Bola Tinubu and the Chairman of the Presidential Advisory Committee on Fiscal Policy and Tax Reform, Taiwo Oyedele, have alleviated many concerns.
“The unfortunate part of this debate is that it has been taken over by people with zero knowledge about VAT or the bills themselves,” Sule remarked. “Some are doing it to save their jobs, others for political gain, and some for reasons unrelated to the real issues at hand. This has made the discourse unproductive and uninteresting.”
Sule noted that one of the contentious points in the bills was the perception that VAT would only be administered at the point of revenue generation. According to him, this misunderstanding led to widespread opposition. However, recent engagements with Oyedele’s committee and other stakeholders have clarified that VAT sharing will involve both the points of revenue generation and consumption.
“During the meeting in Kaduna, we were initially told that 60% of VAT revenue would be allocated solely at the point of generation,” Sule explained. “But Mr. Oyedele later clarified that the 60% would be shared between the point of generation and the point of consumption. This adjustment addresses one of our key concerns.”
Calls for Amendments Instead of Withdrawal
The Nasarawa State Governor, who also serves as Chairman of the North Central Governors Forum, emphasized that the initial request for the withdrawal of the bills may no longer be necessary. He pointed out that President Tinubu and Oyedele have assured that the bills can be amended to reflect stakeholders’ concerns.
“What we wanted was for the contentious areas to be discussed and addressed, and that is already happening,” Sule said. “The bills don’t necessarily need to be withdrawn if amendments can incorporate our suggestions. This approach ensures progress without disrupting the legislative process.”
President Tinubu’s Commitment
Governor Sule commended President Tinubu’s open-mindedness in addressing concerns about the bills. He revealed that during a recent meeting, Tinubu assured the governors that their concerns would be reviewed and addressed.
“In our last meeting with Mr. President, he confirmed his willingness to look into the bills and address areas of concern,” Sule stated. “Similarly, Taiwo Oyedele and Zach Adedeji, who are key figures behind these reforms, have shown a readiness to engage in constructive dialogue.”
What you should know
During the recent deliberations on President Tinubu’s proposed tax reform bills, a heated national debate emerged, particularly driven by significant opposition from influential governors.
- These critics fear the reforms could exacerbate regional inequalities and intensify existing economic challenges in their regions.
- Prominent voices, including Borno State Governor Babagana Zulum, have raised concerns about the bill’s potential socioeconomic impact.
- They argue that northern Nigeria, already grappling with economic hardships, high poverty levels, and persistent security challenges, may face disproportionate burdens under the new tax regime.
- Under mounting pressure from northern governors and 73 northern lawmakers, the House of Representatives has chosen to indefinitely suspend debates on the contentious bill.
