Nigerian president, Bola Tinubu, on Monday vowed that his admistration is not going to back down on the new tax reforms bill before the National Assembly.

Tinubu, who stated this during a media chat with selected journalists said that Nigeria “can’t continue in the old ways.”

“Tax reform is here to stay. We cannot just continue to do what we were doing yesteryears in today’s economy. We cannot retool this economy with old thoughts.

“I believe I have that capacity, I believe so that is why I went into the race. I am focused, let’s all focus on what Nigeria needs and what I am supposed to do for Nigerians.

“It’s just not going to be eldorado for everybody. But a new dawn is here and I am convinced and you should be convinced, you should help propagate that conviction.”

The introduction of President Bola Tinubu’s Tax Reforms Bill has sparked widespread debates across Nigeria.

This proposed legislation aims to overhaul the country’s tax collection and administration systems, presenting an opportunity to create another taxation model.

At the heart of the bill are radical provisions, such as revisions to the Value Added Tax (VAT) revenue-sharing formula and exemptions for small businesses and the average Nigerians.

While the changes could potentially revitalise Nigeria’s economy, they also expose critical issues within the country’s federal structure, particularly the economic imbalances among regions (States and Local Governments).

One of the most contentious aspects of the reform is the proposed VAT revenue-sharing formula. Under the new model, 60% of VAT revenue will be allocated to the state where goods and services were consumed, 20% distributed based on population, and the remaining 20% equally shared among all states.

This marks a departure from the current system, where revenue is distributed based on where companies remit taxes, often in states with a high concentration of corporate headquarters like Lagos and Rivers.

While the new model aims to ensure fairness by emphasising consumption patterns, it has drawn intense criticism, especially from northern state governors and stakeholders who feel disadvantaged.

The governors’ main concern lies in the derivation-based model, which they argue unfairly shifts a larger share of the revenue to southern states.

This approach could exacerbate existing economic disparities and disrupt Nigeria’s delicate balance of fiscal federalism. However, this resistance also discloses a deeper issue: the over-reliance of certain states on federal allocations instead of actively developing their internal revenue-generating capacities.

The bills include a proposal to establish the Joint Revenue Board, the Tax Appeal Tribunal, and the Office of the Tax Ombudsman, all part of President Tinubu’s comprehensive tax reform package.

For Advert, Event Coverage/Press Conference Invite, Story/Article Publication & Other Media Services
Contact Us On WhatsApp
Send Email To: citizennewsng@gmail.com
Visit Citizen NewsNG To Read More Latest And Interesting News Across Nigeria And The World

‎