Abdullahi Sule, governor of Nasarawa state, says northerners were misled into believing that the tax reform bills would result in additional financial burden.
Sule’s comments come on the heels of the Nigeria Governors’
Forum (NGF) throwing its weight behind the proposed tax legislation before the
national assembly.
On Thursday, the NGF in a statement issued after its meeting
with the presidential tax reform committee, proposed an “equitable” sharing
formula for value-added tax (VAT).
The governors recommended that there should be no terminal
clause for TETFUND, National Agency for Science and Engineering Infrastructure
(NASENI), and National Information Technology Development Agency (NITDA) in the
sharing of development levies in the bills.
They also supported the continuation of the legislative
process at the national assembly that will culminate in the eventual passage of
the bills.
Speaking on Politics Today, a programme on Channels
Television, on Thursday, Sule said the endorsed tax reforms by the NGF aim to
eliminate inefficiencies and create a fairer tax system.
Sule also dispelled notions of a divide between the northern
governors and the President Bola Tinubu administration.
“Most of the people in the north have been sold the idea
that there are going to be additional taxes. Today, by this agreement, there is
no additional tax,” the governor said.
“Definitely it will settle the dust. And if you look at most
of the debates, people are saying ‘we don’t want additional taxes’. We are
saying today that by this, there are no additional taxes.
“And it also puts people who want to put heads between the
president and some other people to rest. Now, they can understand that what
those other people have done is actually in the interest of Nigeria.”
‘ENACTMENT OF TAX BILLS WILL ATTRACT MORE INVESTMENT’
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The Nasarawa governor said if the tax legislation is passed,
it will stimulate economic growth and attract investment to the country.
Sule noted that the reforms extend beyond VAT, covering
critical areas like stamp duties and royalties to foster a more investment-friendly
environment.
“The bigger picture at the end of the day is to get it
passed for the interests of Nigeria in order to attract more investment into
Nigeria. Part of the reform is actually the attraction of additional
investments into Nigeria,” he added.
“That’s why you are eliminating multiple taxations in the
first place. You are also going to look at stamp duties. You are also going to
look at all the other royalties and the rest of that; and you are addressing
them.
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“This will encourage some of these companies that are moving
away from Nigeria to stay. That’s why I say the tax bills are more than just
VAT matters.
“There are so many other issues in it. So if you have not
taken time to go through them, you may not understand. So I think this is the
first catch that is going to be there for Nigeria.”
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The Nasarawa governor said his state is attracting
investments in mining and agriculture, making it an ideal destination for
investors.
He added that a harmonised tax system will be implemented
through coordination between the Federal Internal Revenue Service (FIRS) and
the state’s Internal Revenue Service (IRS), ensuring that taxpayers are given a
specific tax amount to avoid double taxation.
BACKGROUND
The proposed legislations are the Nigeria tax bill, tax
administration bill, and joint revenue board establishment bill.
The president is also seeking to repeal the law establishing
FIRS and replacing same with the Nigeria Revenue Service.
However, the northern governors have urged the national
assembly to reject any legislation that may harm the region’s interests.
The governors called for equitable and fair implementation
of national policies and programmes to prevent marginalisation of any
geopolitical zone.
The presidency, on October 31, 2024, assured the governors
that the proposed laws would not disadvantage any part of the country but will
improve the lives of Nigerians and optimise existing tax frameworks.
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