The National Economic Council (NEC), on Thursday, called for the withdrawal of the pending Tax Reform Bills before the National Assembly, recommending broader consultations and consensus-building on fiscal policy.
The decision followed a presentation by the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, highlighting the need for a fair taxation system, responsible borrowing, and sustainable government spending.
NEC, however, acknowledged that Nigeria’s tax-to-GDP ratio and revenue from major sources have underperformed, indicating a pressing need for reforms.
Oyo State governor, Seyi Makinde, speaking after the NEC meeting presided over by Vice President Kashim Shettima at the State House in Abuja, noted that “sufficient alignment among stakeholders” was essential to the success of any proposed tax changes.
He emphasised that increased communication would help dispel widespread miscommunication and misinformation regarding the Bills.
To this end, NEC recommended that a national survey will serve as a foundation for further consultation efforts.
He said, “NEC today took a presentation from the chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.
“The Council acknowledged that the country is underperforming on all indices as regards major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So, Council therefore recommend the need to withdraw the bills currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation.
“So, the Bills will draw from the National Survey and then there will be consultations afterwards,” Governor Makinded added.
THE RECORDERNG recalls that only a few days ago, the Nothern Governors Forum, led by Gombe State governor, Muhammed Inuwa Yahaya, also voiced its opposition to the Tax Reform Bills during a meeting held on October 28, 2024 in Kaduna, where they expressed apprehensions about a new derivation-based model for Value-Added Tax (VAT) distribution, among others.
