A chieftain of the ruling All Progressives Congress, Chief Niyi Akinsiju, has described the controversy surrounding the four tax reform bills sent by President Bola Tinubu to the National Assembly as an unnecessary distraction.
In recent weeks, the proposed tax reforms have sparked tensions between the Federal Government and the 19 northern governors, who have called for the withdrawal of the bills to allow for more consultation.
Among the critics is Borno State Governor, Prof. Babagana Zulum, who urged northern stakeholders to reject the bills, warning that their implementation could harm the region’s economy.
Former Vice President Atiku Abubakar has also weighed in, calling for transparency and fairness in the review process.
Speaking at a press conference organised by the Independent Media and Policy Initiative in Abuja on Sunday, Akinsiju expressed dismay at what he termed the “unwarranted controversy” surrounding the proposed legislation.
He argued that the agitation was a needless distraction from the positive attributes of the tax reforms.
“We are not surprised by the furore generated over the proposed sharing formula for the proceeds of VAT as contained in the bills,” Akinsiju said. “Interestingly, all the exemptions and considerations in the bills, including others not listed, do not detract from their strong revenue-generation framework.”
He added, “The current disagreement reflects a hangover from an era where states squabbled over revenue allocation. What the tax reforms propose is an innovative and symbiotic fiscal relationship between the state and its citizens—a win-win situation.”
Akinsiju clarified that the misunderstanding stemmed from the existing tax regime, which attributes VAT derivation to headquarters remittance.
In contrast, the new Nigeria Tax Administration Bill proposes attributing VAT to the place of supply and consumption, rather than the location of company headquarters, a change that could potentially benefit more states.
The APC chieftain called on stakeholders to consider the broader economic benefits of the reforms and avoid unnecessary distractions.
