Tax Reforms: CNG Calls For National Consultation To Address Concerns
By Najib Sani, Gombe
The Coalition of Northern Groups (CNG) is calling for consultations on the proposed tax reforms to address the concerns of the northern region on the bill.
During a town hall meeting in Gombe State, the group expressed fear that the changes in the tax laws could worsen hardship in northern states.
Gombe State Coordinator of CNG, Mustapha Deba, who presided over the session said the proposed reforms could have far-reaching adverse effects on the region, including a disproportionate impact on northern states and increased economic disparity.
Deba noted that the emphasis on derivation appears to favour states with higher VAT-generating activities, predominantly in the South.
“The proposed reform’s emphasis on derivation appears to favour states with higher VAT-generating activities, predominantly in the South, such as Lagos.
“This shift could significantly reduce the revenue shares allocated to Northern states, where economic activities are comparatively lower,” Deba said.
He urged the Nigerian Senate to pause consideration of the bill and engage in further consultations with stakeholders with a view to coming up with a tax system that fosters national unity and economic prosperity, “rather than one that deepens existing divides or marginalises any segment of society”.
