ACF remains opposed to Tax Reform Bills, submits recommendations for improvement
By Jeph Ajobaju, Chief Editor
Arewa Consultative Forum(ACF) remains staunchly opposed to President Bola Tinubu’s Tax Reform Bills, despite their progress in the National Assembly (NASS), the northern group outlining its views and recommendations on the bills in a letter to the lawmakers along with a report on details of its objection.
The report was compiled by a special-purpose committee of experts to provide guidance on the proposed overhaul of tax laws.
A statement issued by ACF National Publicity Secretary Tukur Muhammad-Baba in Kaduna on Monday announced that the report of the committee has been forwarded to the NASS.
“The proposed tax reforms have far-reaching implications for all sections of the country, not just the North. Therefore, we have taken a meticulous approach to studying the bills and providing recommendations that will benefit the nation as a whole,” he said.
The report highlights several key areas of concern, including the proposed increase in Value Added Tax (VAT). It recommends retaining the current 7.5 per cent VAT rate, citing the economic challenges facing citizens and businesses, per The Nation.
“We recognise that the government needs to increase revenue, but we also believe that the current VAT rate already places a significant burden on citizens and businesses.
“Increasing the rate further could have unintended consequences, such as reducing consumer spending and harming economic growth,” the statement warne
According to the ACF, these measures could significantly increase revenue without placing an undue burden on citizens and businesses.
Another key concern highlighted in the report is the definition of “derivation” and its distribution.
The ACF recommended clearly defining the term and ensuring that its distribution is based on a consensus reached through consultations with states and local governments.
“The concept of derivation is critical to ensuring that states and local governments receive their fair share of revenue.
“However, the current definition is ambiguous, and we believe it needs to be clarified to avoid disputes and ensure transparency.”
The report recommends significantly reducing the powers attributed to the Chief Executive Officer and Chairman of the Board of Directors/Governance of the Joint Revenue Board.
According to the ACF, the proposed provisions centralise excessive supervisory and accountability powers in a single individual.
“We believe this is not in the nation’s best interest, and we recommend that the powers of the Joint Revenue Board be reduced to prevent abuse and ensure accountability.”
The report recommends amending Section 69 of the proposed Nigeria Tax Bill to retain TETFUND and NITDA.
The ACF said these organisations play critical roles in promoting education and technological development and their retention is essential for Nigeria’s progress.
Finally, the report suggests allowing records of accounts and tax returns to be prepared in local languages, in addition to English.
According to the ACF, this will simplify compliance with tax laws and reduce the burden on taxpayers.
ACF distributes its report to other stakeholders
The ACF distributed its report to various stakeholders, including the Forum of Northern State Governors, traditional rulers, and relevant government agencies.
It urged all stakeholders to engage with the NASS and contribute to robust laws that will stand the test of time.
“We believe our report provides valuable insights and recommendations that will benefit the nation.
“We encourage all stakeholders to study the report carefully and provide feedback to the National Assembly. Together, we can create a tax system that is fair, efficient, and promotes economic growth and development.
