Concerns Raised by the NEF
The NEF has urged the Federal Government to suspend the proposed Tax Reform Bills to allow for a more inclusive review process.
They argue that the current provisions, particularly the exclusion of agricultural products and livestock from Value Added Tax (VAT), could adversely affect Northern Nigeria's economy.
The NEF emphasizes that livestock is a crucial economic activity in the region, and its VAT exemption could have significant negative repercussions.
Recommendations from the NEF
The NEF has made several recommendations to improve the proposed tax laws, including:
Suspension of Bills: Immediate suspension of the bills to facilitate dialogue and gather contributions from diverse stakeholders.
VAT Increase: No increase in VAT should be imposed until there is clear evidence of economic recovery.
Fair Revenue Sharing: The proposed formula for VAT revenue distribution should be fair to states generating the revenue.
Respect for Legislative Process: The NEF insists that the President should respect the legislative process and allow the National Assembly to perform its duties without undue interference.
Political Reactions
Northern leaders have expressed disappointment over President Tinubu's insistence on moving forward with the tax reform bills without adequate consultation.
Critics, including members of the National Assembly, have described the President's stance as unilateral and lacking inclusivity.
There are concerns that the tax reform debate is being framed as a North-South issue, which the NEF argues is misleading and counterproductive.
The Northern Elders' Forum (NEF) has expressed its opposition to the Federal Government's proposed Tax Reform Bills, urging for an immediate suspension. In a statement, they outlined their concerns and recommendations regarding the reforms.
Concerns Raised by NEF
The NEF emphasized the need for a more inclusive review process of the Tax Reform Bills.
They highlighted the exclusion of agricultural products, particularly livestock, from Value Added Tax (VAT), which they believe could adversely affect the economy of Northern Nigeria.
The forum criticized the framing of the tax reform debate as a North-South issue, asserting that contributions from all geopolitical zones should be considered.
Recommendations Made by NEF
Immediate Suspension of Bills: The NEF called for the Federal Government to suspend the implementation of the proposed Tax Reform Bills to allow for dialogue and input from various stakeholders.
VAT Concerns: They recommended that no increase in VAT should be imposed until there is clear evidence of economic recovery.
Fair Revenue Sharing: The NEF argued that the proposed formula for VAT distribution is unfair to states generating VAT revenue and called for a uniform application of the rule of attribution based on consumption location.
Respect for Constitutional Provisions: They urged that the authority of the Revenue Mobilization Allocation and Fiscal Commission (RMAFC) in determining revenue sharing formulas should be respected.
Protection of Strategic Institutions: The NEF recommended maintaining the status quo for developmental and technological institutions to ensure their sustainability.
Terminology Changes: They suggested replacing contentious terms in the Tax Reform Bills to promote financial inclusion.
Exemptions for Religious Organizations: The forum proposed that religious and charitable organizations should be exempt from all forms of taxes to avoid conflicts with religious laws.
Inclusion of Agricultural Goods: They pointed out the omission of agricultural goods and livestock from the VAT exemption list, stressing the economic significance of these sectors in Northern Nigeria.
The statement reflects a deep concern about the state of democracy and governance in the country. It highlights a perceived failure of the government to uphold democratic values, particularly the importance of free speech and the open exchange of ideas. The use of phrases like "terribly shocking" and "sadly saddled" conveys a sense of disappointment and urgency, suggesting that despite years of democratic practice, there are still significant challenges to citizens' rights. This sentiment resonates with many who advocate for stronger protections of civil liberties and a more responsive government that listens to and engages with its citizens. The call for "vigorous ventilation of democratic opinions" emphasizes the need for a robust public discourse, which is essential for a healthy democracy.
The proposed tax reforms in Nigeria, which include four key bills, are designed to improve tax collection and increase government revenue. However, the Northern Elders Forum has raised concerns that these reforms may unfairly burden Northern Nigeria, which is already grappling with significant socio-economic challenges.
Overview of the Proposed Tax Reforms
The reforms consist of:
Nigeria Tax Bill
Nigeria Tax Administration Bill
Nigeria Revenue Service (Establishment) Bill
Joint Revenue Board (Establishment) Bill
Objectives:
Enhance tax collection efficiency
Boost government revenue
Concerns Raised by the Northern Elders Forum (NEF)
The NEF argues that:
The reforms disproportionately affect Northern Nigeria.
Northern Nigeria is already facing challenges such as:
Insecurity
Poverty
Youth unemployment
Implications of the Reforms
Potential impacts on Northern Nigeria:
Increased tax burden on already struggling communities
Risk of exacerbating existing socio-economic issues
The need for a balanced approach:
Consideration of the unique challenges faced by different regions
Ensuring that reforms promote equitable growth across the country
Conclusion
The NEF's position highlights the need for a more collaborative approach to tax reform that considers the unique economic realities of Northern Nigeria. Their recommendations aim to ensure that the proposed tax laws are equitable and beneficial for all regions of the country.
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