No Threat From Governors Over Tax Reform Implementation – Lawmakers

Some federal lawmakers have refuted claims that governors are threatening to deny them re-election tickets in 2027 over their support for President Bola Tinubu’s tax reform bills.

This denial follows reports by Deputy Spokesman of the House of Representatives, Philip Agbese, who alleged that certain governors were pressuring lawmakers to withdraw their backing for the bills.

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EKO HOT BLOG reports that the proposed tax reforms, based on recommendations by the Presidential Committee on Fiscal and Tax Reforms, include four key bills: the Nigeria Tax Bill, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill. These bills aim to create a clearer tax framework, redistribute wealth, and establish a tax tribunal.

Governors of the 19 northern states had earlier rejected the derivation-based Value Added Tax distribution model, citing disadvantages for their region. Subsequently, the 36 state governors collectively opposed the bills, requesting further consultations.

Despite these concerns, several lawmakers dismissed reports of threats. Chike Okafor from Imo State said his governor had not pressured lawmakers, adding that the governor, as Chairman of the Progressive Governors’ Forum, supports legislative processes. Babajimi Benson of Lagos State described the reforms as progressive and unlikely to face genuine opposition from informed governors.

Opposition lawmakers, including Labour Party’s Alex Ikwechegh and PDP’s Joshua Gana, downplayed any threats, emphasizing their commitment to Nigerians’ welfare.

Political parties expressed differing views on the reforms. While the APC called for wider consultations and rejected alleged blackmail, the Labour Party criticized the government’s reliance on taxation and loans, urging transparency in utilizing tax revenues. Meanwhile, the PDP and NNPP stressed the importance of a fair and inclusive taxation system.

The bills are set for deliberation in the National Assembly on November 26, 2024.

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