The Federal Government’s proposed tax reform bill, championed by President Bola Tinubu, has drawn fierce opposition from prominent northern political and thought leaders. They argue that the reforms could worsen regional economic disparities, deepening challenges in a region already plagued by poverty and insecurity.
Key Critics of Tinubu’s Tax Reform Bill and Concerns
Among the notable critics of Tinubu’s Tax Reform Bill are:
- Former Vice President Atiku Abubakar
- Borno State Governor Babagana Zulum
- Former Sokoto State Governor Aminu Tambuwal
These leaders have raised concerns about the potential socioeconomic impact of the bill on the northern region. They contend that the reforms could disproportionately burden northern states while benefiting wealthier regions, particularly Lagos State.
Opposition in the Legislature
Pressure from northern governors and lawmakers has led to the indefinite suspension of debates on the tax reform bill in the House of Representatives. The move was formalized in a memo by the Clerk of the House, Dr. Yahaya Danzaria, following resistance from:
- 73 Northern lawmakers
- 19 Northern state governors
Statements from Key Figures
- Atiku Abubakar emphasized the need for a transparent and equitable fiscal system, calling for inclusive participation in policymaking.
- Babagana Zulum criticized the rushed legislative process, comparing it unfavorably to the Petroleum Industry Bill, which took decades to pass. He warned that only Lagos State might significantly benefit from the proposed reforms.
- Aminu Tambuwal described the timing of the reforms as inappropriate, given the ongoing economic hardships from naira devaluation and subsidy removal.
Opposition from Kano Lawmakers
In Kano State, 24 federal lawmakers rejected the bills during a caucus meeting chaired by Deputy Governor Aminu Gwarzo. This collective stance reflects a broader regional discontent.
Content of the Tax Reform Bills
The four proposed bills aim to modernize Nigeria’s tax system by:
- Consolidating existing tax laws.
- Simplifying tax administration.
- Promoting fairness and efficiency.
Key provisions include:
- Exempting individuals earning less than N800,000 annually from income tax.
- Reducing corporate tax rates.
- Exempting small businesses with turnovers below N50 million.
- Gradually increasing VAT rates and improving tax collection technology.
Legislative and Regional Implications
The legislative debate has exposed tensions between fiscal policy and regional equity. Observers are keenly watching how the proposed reforms will shape Nigeria’s tax system, fiscal policies, and national unity.
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The outcome of this legislative battle could significantly influence Nigeria’s economic trajectory and regional dynamics.
