• Labour unions, pro-masses groups urged to resist tax bills
Yoruba Ronu Leadership Forum has urged President Bola Tinubu to withdraw the Tax Reform Bills in the interest of Nigeria and Nigerians.
The Sout- West socio-economic group urged Tinubu not to see the advice to withdraw the bill as a defeat to what his administration intends to achieve but for the general good of Nigerians.
Also, former Senate Leader, Mohammed Ali Ndume, described the pronouncement of the governors to give full support to tax reform bills as commendable.
He got the backing of the Campaign for Democratic and Workers Rights (CDWR) which strongly condemned the bills that are before the National Assembly.
But Arewa Youth Consultative Forum (AYCF) maintained that the reforms, despite potential short-term challenges, are essential for Nigeria’s overall development.
The northern group also flayed the Northern governors for their recent volte-face regarding the bills, which it said generated needless controversy and misleading the public only for the governors to inexplicably capitulated to the reforms.
President of Yoruba Ronu, Akin Malaolu, said, “Following the latest adjustments of tax reform bills acceptable to some few governors but not all, we must caution that the National Economic Council (NEC) should meet again to take a critical look at the future consequences of what are being touted as new arrangements.
“In our nation’s pursuit of peace and national harmony with cohesion, our leadership forum is of the firm opinion that the tax reform bills should be withdrawn entirely to save the heart of Nigeria and her future.”
According to the forum, insecurity is still pervasive, power outage a constant experience nationwide and virtually all the reforms by Tinubu’s Presidency have shown not only their consequences but also the fact that the government itself has refused to acknowledge its wrong policies and its lack of probity and accountability for several loans secured.
In a contrary view to Yoruba Ronu, President of AYCF, Yerima Shettima, said the Northern governors’ initial antagonism to the tax reform bills was a betrayal of the trust placed in them, a demonstration of their incompetence in managing their states’ affairs and, ultimately, a disservice to the Northern people.
AYCF said, “The Northern governors initially presented a united front against the proposed tax reforms, citing concerns about their potential negative impact on the already struggling Northern economy. This stance, while arguably understandable given the region’s socio-economic challenges, was fundamentally flawed. Their arguments lacked substance and failed to acknowledge the vital role of robust taxation in funding essential public services like healthcare, education and infrastructure.
“Instead of engaging constructively with the government to address specific concerns and negotiate amendments, they chose to employ divisive rhetoric, fuelling public unrest and hindering national progress. This approach reveals a lack of foresight and strategic planning, highlighting their failure to effectively represent the interests of their constituents.
The sudden and unexplained shift in their position, without any apparent concessions or amendments achieved, casts serious doubt on their integrity and raises questions about the motives behind their initial opposition.”
The Nigeria Governors’ Forum (NGF) at the end of their meeting with the Presidential Tax Reform Committee, last week, agreed to support the proposed legislation.
In a communiqué signed by the Chairman, Governor Abdulrahman Abdulrazaq of Kwara State, NGF “endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50 per cent based on equality, 30 per cent based on derivation, and 20 per cent based on population.”
Reacting to the development, Sen Ndume (Borno South) picked holes in the 30 per cent to be set aside based on the principle of derivation, saying 10 per cent should be enough to be shared based on derivation. He equally faulted the four per cent to be collected by the Federal Inland Revenue Service (FIRS) as administrative charges.
CDWR, in a statement, argued that the reforms were designed to reduce tax obligations for big businesses while shifting the burden to low-income earners.
The tax reforms, encapsulated in four bills, aim to replace 11 existing tax laws, including the Companies Income Tax Act, Value Added Tax Act, and Petroleum Profits Tax Act.
According to CDWR, the reforms will primarily increase revenue collection through regressive tax measures while granting significant tax incentives to large corporations.
The group lamented that one controversial aspect of the reform is the planned increase in Value Added Tax (VAT) rates to 10 per cent in 2025, 12.5 per cent from 2026 to 2029, and 15 per cent from 2030.
In the statement signed by its National Chairman, Rufus Olusesan, and National Publicity Secretary, Chinedu Bosah, CDWR asserts that this will worsen the cost of living crisis, deepen poverty, and increase unemployment.
The organisation is also critical of plans to phase out funding for the Tertiary Education Trust Fund (TETFund) by 2030, redirecting funds to the Student Education Loan Fund. CDWR warns this will lead to higher education costs, disproportionately affecting students from poor families.
It called on the leadership of labour unions and other pro-masses organisations to mobilise workers and communities against the reforms. It urged a mass movement to demand adequate funding for education, fair taxation and an end to neo-liberal policies that prioritise corporate interests over public welfare.
