New tax reforms will benefit all states – Presidency

The Bola Ahmed Tinubu administration has clarified that its proposed tax reform bills, currently before the National Assembly, aim to benefit every region in Nigeria, including the north.

The assurance came on Thursday in a statement by Bayo Onanuga, Special Adviser on Information and Strategy to President Tinubu.

This follows recent opposition from the Northern Governors’ Forum, which represents the 19 northern states. The forum, in a meeting on Monday, October 28, expressed concerns about the new derivation-based model for Value-Added Tax (VAT) distribution, which forms part of the tax reform bills. The forum’s communiqué, read by Gombe State Governor Muhammed Inuwa Yahaya, highlighted apprehensions from northern governors and traditional leaders, including the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III.

Addressing the concerns, Tinubu’s spokesperson stated, “While we commend the governors and traditional leaders for supporting President Bola Tinubu’s progress in addressing security challenges, we find it necessary to clear up misunderstandings surrounding the ongoing tax reform efforts.” The statement emphasized that the administration’s goal is to streamline tax processes, increase efficiency, and eliminate redundancies to make tax obligations fairer and easier nationwide.

The proposed reforms, which emerged after a thorough review of Nigeria’s tax laws, consist of four major bills:

1. The Nigeria Tax Bill – This bill aims to reduce multiple taxations, making Nigeria’s economy more competitive and simplifying tax responsibilities for individuals and businesses alike.

2. The Nigeria Tax Administration Bill (NTAB) – This seeks to unify tax administration across federal, state, and local levels, making compliance easier for taxpayers in all regions.

3. The Nigeria Revenue Service (Establishment) Bill – The bill proposes renaming the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), reflecting the agency’s mandate to serve the entire federation, not just the Federal Government.

4. The Joint Revenue Board Establishment Bill – This proposes the creation of a Joint Revenue Board to succeed the Joint Tax Board, encompassing tax authorities from both the federal and state governments.

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The administration’s statement reassures all stakeholders that the reforms are intended to modernize Nigeria’s tax landscape and promote a fairer, more equitable tax structure across the country.