Tax Reform Bills: Tinubu Bows to 19 Govs' Pressure, Source Names Presidency's Next Step

• President Bola Tinubu has reportedly bowed to the pressure of the 19 northern governors and planning to withdraw the controversial Tax Reform Bills
• According to presidential sources, the presidency is withdrawing the bill to provide room for more comprehensive consultations
• The northern governors and traditional rulers have kicked against the bill, citing it would make the region poor

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The Bola Tinubu presidency plans to withdraw the Tax Reform Bills sent to the National Assembly two months ago due to controversy surrounding the legislation. The bills, transmitted on September 3, 2024, aimed to reform Nigeria's tax system but faced opposition from 19 northern governors and traditional rulers.

Sources reveal that the presidency will modify and resubmit the bills to the National Assembly in the future. The National Economic Council (NEC) recommended withdrawing them during its 144th meeting, which was presided over by Vice President Kashim Shettima on Thursday, October 31.

According to Daily Trust, the sources from the presidency maintained that the withdrawal of the bill was to provide for wider consultations before being resubmitted.

Presidency defends Tax Reform Bills

The presidency had earlier defended the bills, noting that the reforms were for economic development driven by "enhancing taxpayer compliance, strengthening our fiscal institutions and fostering a more effective and transparent fiscal regime."

The northern governors and monarchs rejected the Tax Reform Bill, citing its potential harm to the North's interests, particularly the proposed Value Added Tax (VAT) distribution amendment. They argued that VAT should be remitted based on consumption location, not company headquarters.

Governor Inuwa Yahaya of Gombe State emphasized the need for equity and fairness in national policies, ensuring no geopolitical zone is marginalized. Governor Abdullahi Sule of Nasarawa State clarified that the governors' opposition was not against President Tinubu but rather the potentially unfair VAT bill.

Sule explains why North rejects Tinubu's bill

Legit.ng earlier reported that Abdullahi Sule, the governor of Nasarawa state, had said the 19 northern governors were not against President Bola Tinubu.

Sule maintained that it would not make sense for the North, which worked effortlessly to ensure President Tinubu emerged victorious, to turn against him.

However, the Nasarawa state governor maintained that the governors rejected the VAT bill because it wouldn't be fair to the region.