The tax reform bill before the National Assembly is not targeted at the 19 northern states, the presidency has said.
The governors of the 19 Northern states had rejected the bill, especially the proposed amendment to the distribution of Value Added Tax (VAT) to a derivation-based model.
But in a statement on Thursday, presidential spokesman, Bayo Onanuga, said the new proposal, as enunciated in the bill, is designed to create a fairer system that will benefit all states.
Onanuga, the Special Adviser on Information and Strategy to President Bola Tinubu, stated that the ongoing tax reform seeks to correct the inequity in the current derivation model as a basis for distributing VAT revenue.
“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.
According to Onanuga, the new policy initiatives are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.
He explained that the reforms being proposed are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part 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.