According to PUNCH, A coalition of Northern groups, including the Coalition of Northern Groups (CNG) and the Northern Elders Forum, has vehemently rejected the proposed tax reform bill, citing its potential to exacerbate socioeconomic challenges in the Northern region.
During a one-day town hall meeting at the Gombe State University, CNG Gombe Coordinator, Mustapha Deba, emphasized that the coalition had meticulously analyzed the bills and concluded that they would have far-reaching adverse effects on the region.
Deba noted that the proposed reform’s emphasis on derivation appears to favor 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.
“The resultant financial shortfall would impede our region’s development initiatives and exacerbate existing disparities,” Deba warned. “By altering the VAT sharing formula without adequate safeguards, the reform risks widening the economic gap between the North and South.”
The group also expressed concerns that the reforms could lead to social unrest, migration to economically stronger states, and other socio-economic challenges. They emphasized the need for policymakers to avoid any policy that could deepen regional inequalities.
The rejection of the proposed tax reform bill by Northern groups is a significant development, as it highlights the need for more inclusive and equitable economic policies that take into account the unique challenges and needs of different regions in Nigeria.
The town hall meeting, which was attended by various stakeholders, including community leaders, civil society organizations, and representatives of the state government, provided a platform for the groups to express their concerns and recommendations on the proposed tax reform bill.
The groups called on the federal government to reconsider the proposed reforms and engage in wider consultations with stakeholders to ensure that the final policy is fair, equitable, and takes into account the unique needs and challenges of different regions in Nigeria.
As the debate over the proposed tax reform bill continues, it is clear that the concerns of Northern groups cannot be ignored. The federal government must take into account the potential impact of the reforms on different regions and ensure that the final policy is fair, equitable, and promotes economic growth and development for all Nigerians.