Tax Reform Bill Not Against Northerners – Presidency

Special Adviser to the President on Information and Strategy, Bayo Onanuga has defended the proposed bill from the Presidency seeking reforms in Nigeria’s tax collection processes.

Recall that the Federal Executive Council, which Tinubu presided, recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

But the governors of 19 Northern States, under the platform of the Northern Governors’ Forum, at their meeting recently, poked holes in the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the National Assembly.

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Chairman of the Forum, Governor Muhammed Inuwa Yahaya of Gombe State presided over the meeting where the northern elites opposed the policy.

Onanuga while reacting on behalf of the President, explained that the reforms emerged after an extensive review of existing tax laws.

He noted that 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.

“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.

“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,” Onanuga stated.

He explained that 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.

According to him, the bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.