State Governors and other members of the National Economic Council (NEC) have asked President Bola Tinubu to withdraw the Tax Reforms Bills before the National Assembly to allow for wider consultations and consensus building.
The appeal came days after northerners alleged that the bill would result in job losses and cripple the fragile economy amid subsidy removal impact.
Addressing newsmen after the meeting on Thursday, the Oyo State Governor, Seyi Makinde, stated that the tax bill formed the major part of resolutions reached at the 144th meeting of the NEC at the State House, Abuja.
Makinde said that the council members agreed that it was necessary to allow for consensus building and understanding of the bills among Nigerians.
“NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills,” he stated.
Makinde, who stated that this decision was made for the country’s benefit, emphasized the need for further consultations regarding the bills.
“We saw the gap and decided that there is a need for a wider consultation,” the governor added.
Before the briefing, the Federal Government stated that the new laws are meant to enhance efficiency and eliminate redundancies across the nation’s tax operations.
The reforms emerged after a review of existing tax laws since August 2023. The National Assembly is considering four executive bills containing these tax reform efforts.
NEC’s decision came days after the Northern Governors kicked against the reform bills.
At a meeting on October 28, 2024, Governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.
A communiqué read by the Chairman of the forum and Gombe State Governor, Muhammed Yahaya, said the proposition negates the interest of the North and other sub-nationals.
