Home » Tax Reform Bill: Coalition Demand Withdrawal, Clamour for VAT Derivation Formula

Tax Reform Bill: Coalition Demand Withdrawal, Clamour for VAT Derivation Formula

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Musa Na Allah Sokoto

A Coalition of Northern Group (CNG) has raised the alarm over the proposed Tax Reform Bill, which threatens to deepen the already dire socioeconomic condition in Sokoto state and the entire Northern Nigeria, adding that the bad policies risk dismantling the fabric of economy and society.

The group’s coordinator, Mr Faisal Salisu, addressed journalists at a press conference on Saturday.

He said President Tinubu’s tax reform is a threat to Sokoto state and the entire Northern Region.

Salisu said, that amidst insecurity in the north, economic conditions, and border closures, the Tinubu administration proposed a Tax reform Bill with sweeping changes that would disproportionately and negatively devastate Northern Nigeria and Sokoto state.

“The tax reform which includes a new VAT derivation formula and the consolidation of multiple levies into a single development levy, as a pathway to growth, it’s starkly different, especially for our disadvantaged region.

“We have extensively reviewed the proposed Tax Bill and skillfully uncovered many alarming disparities, the VAT sharing formula will preponderantly benefit Lagos and Rivers states to the detriment of Sokoto state  and the entire North along with the South East and South-South geopolitical zones”

“Depending on pivotal institutions such as TETFUND, NITDA, and NASENI will stifle advancement in education, Technology, and industrial sectors that are crucial for the North’s development.

“These institutions play a vital role in bridging the developmental gap between regions and their emasculation under the guise of reforms which threatens to entrench inequality and undermine the unity and cohesion of the country.”

The group however stated that, with a high level of insecurity and fragile economy already exacerbated northern Nigeria faces a socioeconomic disaster, “Border communities in Sokoto, Katsina, Borno and Kebbe states have witnessed paralyzed commercial activities due to border closures and insecurity.

According to CNG Sokoto state and the entire northern Nigeria suffer from an acute power crisis, local government areas such as Tangaza, Binji, Silame, Gudu, and many council areas in Sokoto state have spent over a decade without electricity which is crippling their economy, and social development.

“Lack of power has severely affected institutions like the Federal College of Education Gidan Madi  which is located in that axis, “Reconnecting these areas to the national grid is imperative to foster growth enhance educational opportunities, and improve the quality of life for residents”

Northern Nigeria has borne the brunt of unrelenting insecurity for years, with communities across Sokoto state such as Isa, Sabin Birni Goronyo, Rabah, Gwadabawa, Gada, Tureta, Kebbe, Gudu, Tangaza, Binji and Wurno areas left vulnerable and unprotected.

“These areas once thriving as centers of agriculture and trade, now reel under the devastating effects of banditry and communal violence; the inability of the government to adequately secure lives and property has left many communities desolate with their economic activities crippled and their people displaced or impoverished.”

The Group reiterated their demand for immediate and unequivocal withdrawal of the tax reform bill already before the national assembly and that the government should publish detailed data justifying the proposed VAT derivation formula to enable public evaluation of its fairness.

The immediate revitalization of the power sector and reconnecting delay Silame, Binji, Tangaza, Gudu, and many local government areas in Sokoto state to the national grid, ensure the establishment of more power stations and substations to stabilize electricity supply, reduce cost and drives development in the northern region.

The group calls on all northern stakeholders, traditional leaders, civil society organizations, and the revered Ulama to stand united in defense of the region’s future.

“We urged our brothers and sisters in the South East and South-south and parts of the South West who share in this struggle to join hands with us in advocating for a just, fair and equitable Nigeria”

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