The Northern Governors Forum has expressed strong opposition to the proposed Tax Reform Bill, which has been submitted to the National Assembly. They argue that the bill, particularly its suggested shift to a derivation-based model for distributing Value Added Tax (VAT), poses a threat to the interests of northern states and other regions.
In a statement delivered by the chairman of the forum, Governor Mohammed Yahaya of Gombe State, the governors voiced their concerns over the bill’s implications. “The forum is dismayed by the recent Tax Reform Bill submitted to the National Assembly,” Yahaya stated, emphasizing that the proposed changes in VAT distribution could have adverse effects on the North and other sub-national areas.
The primary concern centers around the transition to a derivation-based VAT model, where revenue distribution would be influenced by the location of consumption rather than remittances made by companies based on the location of their headquarters.
The governors argue that this adjustment could disadvantage the North and other areas that do not host the headquarters of major companies.
Consequently, the Northern Governors Forum is urging members of the National Assembly to oppose this amendment, warning that it could harm the well-being of their constituents.
In addition, the forum called for equitable and fair implementation of all Federal Government policies and programs, stressing that no geopolitical zone should be marginalized or deprived of resources.
The governors insist that national initiatives should be administered in a way that ensures fairness and inclusivity across all regions.
