The presidency has clarified that the tax reform bill currently before the National Assembly is not aimed specifically at the 19 northern states.
This follows objections from the governors of these northern states, who voiced concerns over the bill, particularly the proposed shift to a derivation-based model for Value Added Tax (VAT) distribution.
However, in a statement on Thursday, presidential spokesman Bayo Onanuga explained that the proposed reforms outlined in the bill aim to establish a more equitable system that will benefit all states.
Onanuga, who serves as Special Adviser on Information and Strategy to President Bola Tinubu, noted that the ongoing tax reform intends to address inequities in the current VAT distribution model.
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“While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration,” the statement read.
Onanuga stated that the new policy initiatives aim to streamline Nigeria’s tax administration processes, boosting efficiency and eliminating redundancies nationwide.
He clarified that these proposed reforms are essential for improving the lives of Nigerians and were introduced by President Tinubu without any intention of disadvantaging any region of the country.
“President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
“These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.
“First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.
“Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.
“Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.
“Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities,” he stated.
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