Abuja, Oct. 28, 2024 – The Northern Governors Forum has rejected the proposed Tax Reform Bill forwarded by the presidency to the National Assembly.
The bill seeks to share revenue from Value Added Tax (VAT) according to derivation by each state.
The governors expressed their displeasure with the proposed bill in a communique read by Mohammed Yahaya, its Chairman and Governor of Gombe state, at a meeting of the forum at the Kaduna State Government House on Monday.
The governors said they frowned at the proposed amendment to the distribution of Value Added Tax (VAT) due to its derivation-based model.
“Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly.
“The contents of the bill are against the interests of the North and other sub-nationals, especially the proposed amendment to the distribution of value-added tax to a derivative-based model.
“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,” the communiqué read.
The forum urged the National Assembly to reject the bill as it is against the interest of the Northern states. (GBN)
