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Tax Reform Bill Not Against The North, Aims to Benefit All States Equally-Presidency

The presidency has clarified that the tax reform bill currently under review in the National Assembly is not specifically targeted at the 19 northern states, addressing concerns raised by northern governors over a proposed VAT distribution amendment.

The governors had opposed the bill’s shift to a derivationbased model for distributing Value Added Tax (VAT).

In a statement released Thursday, Bayo Onanuga, Special Adviser on Information and Strategy to President Bola Tinubu, explained that the proposed reforms seek to establish a fairer revenue sharing system that benefits every region in the country.

Onanuga underscored that the reform intends to address disparities in the current derivation model, creating a balanced approach for VAT revenue allocation across states.

Onanuga commended the governors and traditional rulers for their support of President Tinubu’s administration, particularly in its achievements on national security.

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He noted that the tax reforms aim to improve the lives of Nigerians through a streamlined and efficient tax administration system, eliminating redundancies and harmonizing processes at all levels of government.

The reforms are designed to simplify tax obligations for both businesses and individuals nationwide, making Nigeria’s tax system more competitive, he explained.

Key aspects of the reform include four executive bills intended to modernize Nigeria’s tax landscape:

  1. Nigeria Tax Bill: Focused on reducing multiple taxation and making the economy more business friendly.
  2. Nigeria Tax Administration Bill (NTAB): Proposes standardized rules for tax administration at the federal, state, and local levels to improve taxpayer compliance.
  3. Nigeria Revenue Service (Establishment) Bill: Seeks to rename the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS), reflecting a broader mandate as a federation wide revenue agency.
  4. Joint Revenue Board Establishment Bill: Proposes the establishment of a Joint Revenue Board to replace the existing Joint Tax Board, ensuring collaboration between federal and state tax authorities.

These reforms, backed by the Federal Executive Council, followed a comprehensive review of Nigeria’s tax laws and represent the administration’s commitment to a transparent, efficient, and equitable tax system for the entire nation

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