Northern Groups Clash Over Proposed Tax Reforms, Call For Fairer Approach

Northern Groups Clash Over Proposed Tax Reforms, Call For Fairer ApproachNorthern groups, including the Coalition of Northern Groups (CNG) and the Northern Elders Forum (NEF), have strongly opposed the tax reform bills currently under consideration by the National Assembly. These groups demand the withdrawal of the bills and call for broader consultations with stakeholders before implementation.....KINDLY READ THE FULL STORY HERE▶

During a town hall meeting at Gombe State University themed “Tax Reform Bill: A Catalyst for Economic Growth or a Burden on the People?”, CNG Gombe Coordinator Mustapha Deba voiced concerns about the reforms’ potential adverse effects, particularly on northern states.

Deba highlighted that the reforms, which prioritize derivation, could benefit states with higher VAT-generating activities, predominantly in the South, while reducing revenue allocations to the North. He warned that this could exacerbate regional disparities, fuel social unrest, and deepen economic challenges in northern regions.

Prof. Sadiq Abubakar added that the reforms might streamline tax administration and boost government revenue but could worsen socio-economic hardships, particularly for northern states grappling with poverty, insecurity, and unemployment.

The Northern Elders Forum criticized the Federal Government for failing to engage critical stakeholders before drafting the bills, describing the approach as a deviation from global best practices. They called for robust pre-reform engagements, a well-defined communication strategy, and an inclusive implementation plan to ensure fairness and national unity.

These demands underline the importance of a taxation framework that promotes equitable development and reflects the unique socio-economic and cultural landscapes of all regions.

During a town hall meeting at Gombe State University themed “Tax Reform Bill: A Catalyst for Economic Growth or a Burden on the People?”, CNG Gombe Coordinator Mustapha Deba voiced concerns about the reforms’ potential adverse effects, particularly on northern states.

Deba highlighted that the reforms, which prioritize derivation, could benefit states with higher VAT-generating activities, predominantly in the South, while reducing revenue allocations to the North. He warned that this could exacerbate regional disparities, fuel social unrest, and deepen economic challenges in northern regions.

Prof. Sadiq Abubakar added that the reforms might streamline tax administration and boost government revenue but could worsen socio-economic hardships, particularly for northern states grappling with poverty, insecurity, and unemployment.

The Northern Elders Forum criticized the Federal Government for failing to engage critical stakeholders before drafting the bills, describing the approach as a deviation from global best practices. They called for robust pre-reform engagements, a well-defined communication strategy, and an inclusive implementation plan to ensure fairness and national unity.

These demands underline the importance of a taxation framework that promotes equitable development and reflects the unique socio-economic and cultural landscapes of all regions.