NEC Urges Tinubu to Withdraw Tax Reforms for Broader Consultations

Olaitan SodiqNovember 22, 2024115

NEC Urges Tinubu to Withdraw Tax Reforms for Broader Consultations | Daily Report Nigeria

Pic 15 From left. Permanent Secretary, Federal Ministry of Budget and Economic Planning, Dr Emeka Obi; Minister of Budget and National Planning, Abubakar Bagudu; Minister of Finance and Coordinating Minister of the Economy, Wale Edun and Vice President Kashim Shettima during National Economic Council Meeting at the Presidential Villa in Abuja on Thursday (31/10/2024). 0389/OCTOBER/31/10/2024/Sumaila Ibrahim/ICE/NAN

The National Economic Council (NEC) has called on President Bola Tinubu to withdraw the Tax Reform Bills currently before the National Assembly, citing the necessity for wider consultations and consensus building among stakeholders.

During the 144th NEC meeting held at the State House in Abuja, Oyo State Governor Seyi Makinde conveyed the council’s resolution, emphasizing that it is essential for the proposed reforms to be better understood by the public. “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bills,” Makinde stated.

The decision to request the withdrawal follows concerns raised by the Northern Governors, who expressed opposition to the reform bills at their meeting on October 28, 2024. They argued that the new derivation-based model for Value-Added Tax distribution undermines the interests of the Northern states.

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Makinde highlighted that the NEC’s recommendation aims to facilitate deeper discussions surrounding the bills. “We saw the gap and decided that there is a need for wider consultation,” he added.

The proposed reforms, which are meant to streamline Nigeria’s tax administration and eliminate redundancies, have faced scrutiny since their introduction.

Despite the Federal Executive Council endorsing these new policy initiatives, the prevailing discontent among various regional stakeholders raises questions about their implementation.