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The recent tax reform plan that President Bola Ahmed Tinubu’s administration forwarded to the National Assembly was rejected by Northern governors.

This was revealed by the governors in a statement released on Monday by Muhammadu Inuwa, the governor of Gombe State and the chairman of the Northern Governors’ Forum.

This occurs after Tinubu sent a tax reform measure to the Senate and House of Representatives for passage on October 3, 2024.

The Federal Inland Revenue Service (FIRS) will henceforth be known as the Nigeria Revenue Service (NRS) as part of the bill’s sector reforms.

The proposed change to the value-added tax (VAT) distribution scheme to one based on derivatives is the main reason why the governors oppose the measure.

The National Assembly was urged to reject the bill.

“The Forum noted with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.

“The contents of the Blare against the interests of the north and other sub-nationals, especially the proposed amendment to the distribution of value-added tax (VAT) to a derivation-based model.

“This is because companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed.

“In view of the foregoing, the Forum unanimously rejects the proposed tax amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.

“For the avoidance of doubt, the Northern Governor’s Forum is not averse to any policies or programmes that will ensure the growth and development of the country.

“However, the Forum calls for equity and fairness in the implementation of all national policies and programmes so as to ensure that no geopolitical zone is short-changed or marginalized,” they stated.

The Forum urged Nigerians to maintain their composure in the face of the nation’s economic hardship.

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