Tax Reform Bill: Northern Group Kicks, Calls for Wider Consultations
From Abdullahi Alhassan, Kaduna
The Coalition of Northern Groups (CNG), Kaduna State Chapter, has opposed the current Tax Reform Bill before the National Assembly, urging broader consultations before its passage.
In a communiqué issued to newsmen after a town hall meeting and signed by Comrade Muhammed Sanusi Ali on behalf of 134 Kaduna-based Civil Society Organizations (CSOs) and Non-Governmental Organizations (NGOs), the group expressed its unanimous rejection of the proposed bill, citing concerns over inclusivity and its potential adverse impact on various regions and sectors.
The communiqué emphasized the need for extensive dialogue with all stakeholders, including civil society organizations, educational institutions, and local governments, to ensure a fair and consensus-driven approach to tax reforms. It warned that the current proposal, if implemented, might exacerbate economic inequalities and worsen the financial burden on citizens.
The group raised concerns about an increased tax burden, particularly on low-income earners, arguing that poorly calibrated reforms could worsen inequality and limit economic mobility. Additionally, it noted that Nigerians are already struggling with the effects of subsidy removal and exchange rate unification, which have significantly increased the cost of goods and services.
The communiqué highlighted the risk of discontent and social unrest, stressing that reforms perceived as unfair or overly burdensome could erode trust in government institutions and destabilize society. It also questioned the practicality of ensuring fair taxation in the midst of poverty, warning that higher corporate taxes would likely result in increased prices for goods and services.
The group demanded the protection of critical agencies such as TETFUND, NITDA, and NASENI, which are vital for Nigeria’s educational, technological, and industrial progress. It called for an immediate halt to any plans to defund or restructure these institutions and advocated for strengthening their funding and mandates to address national challenges. It also rejected the proposed NELFund, arguing it could burden future generations with unsustainable debt.
The communiqué further criticized the ambiguity in the tax reform bill, particularly the definitions of terms like “derivation” and “family wealth.” It argued that these terms must be clarified to prevent misinterpretation, ensure equitable resource allocation, and avoid undue taxation on family assets or inheritance.
The group urged the relocation of banks and telecommunications companies’ corporate headquarters to Abuja to ensure equitable revenue distribution. It also advocated reopening land borders to ease economic hardships, promote trade, and support border communities. Furthermore, it called for the reduction of VAT to 3% rather than the proposed increase, arguing that this would provide relief to citizens and businesses while encouraging economic activity.
Finally, the communiqué rejected any increase in telecommunications tariffs, emphasizing the need for affordable connectivity as a critical tool for economic and social progress. It concluded by urging the government to prioritize transparency, fairness, and inclusivity in its governance and economic policies, with particular attention to the welfare of citizens in Northern Nigeria.
