Babagana Zulum, the governor of Borno state, has stated that there would be consequences should President Bola Tinubu use his power on the Tax Reform BillsThe Borno state governor insisted that Tax Reform Bills will strongly affect the north, south-south and southeast regions of the countryAccording to Zulum, the controversial bill will only benefit Lagos and Rivers, wondering why the rush for the passage of the bill
Borno State Governor Babagana Zulum has expressed concerns that President Bola Tinubu’s push for the tax reform bills could have severe consequences for millions of Nigerians. Although the president has the executive power to pass the bills, Zulum cautioned that doing so could be detrimental to the country.
The bill, which has passed its second reading in the Senate, is facing strong opposition from Northern elites, including the Northern Governors Forum, Northern Elders Forum, and Senator Mohammed Ali Ndume.
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Photo Credit: @babaganazulum
Source: Twitter
Tinubu’s tax reform bills: What North wanted
Zulum emphasized that the North is not opposed to the tax reform bills entirely; rather, they are seeking more time to consult and fully understand them. He noted that the proposed tax scheme would only benefit Lagos and Rivers states, leaving other states, including those in the North, at a disadvantage. Zulum argued that the VAT provision in the tax law, which allocates 60% of VAT tax based on derivation, would disproportionately benefit states like Lagos and Rivers.
The Borno State Governor urged the federal government to pause and remove some of the clauses in the tax bill that are detrimental to the growth and development of northern Nigeria, as well as the southeast and south-south regions. He emphasized that the country is a democracy, and it is essential to understand the intricacies of the tax regime.
Zulum’s remarks were made during an appearance on Channels Television Politics Today on Sunday, December 1. He reiterated that he respects President Tinubu’s executive power but cautioned that using this power to pass the tax bill could have far-reaching consequences for the country.
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Highlights of tax reform bills
Henzodaily.ng earlier reported that President Bola Tinubu’s administration has released 13 highlights of the Tax Reform Bills that were earlier sent to the national assembly.
According to the presidency, the existing tax system is complex and stifling growth, bringing low revenue results.
According to Sunday Dare, the president’s special adviser on public communication and orientation will help promote sustainable economic growth.
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Source: Henzodaily.ng