Despite assurances that the four tax reform bills in the National Assembly are pro-poor, opposition to the move continued to mount at the weekend.
Vanguard gathered that some state governments and stakeholders are hammering out positions they will present at the Senate Public hearing.
The Federal Executive Council, FEC, had proposed the Tax Reform Bills comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Revenue Service (Establishment) Bill, 2024 and Nigeria Tax Bill, 2024, which the Senate passed for second reading last Thursday.
The president of the Senate, Senator Godswill Akpabio, referred the bill to the Senator Sani Musa-led Committee on Finance to carry out other legislative action, invite all stakeholders to a public hearing to address all areas of concern and report back to the Senate in six weeks.
Among others the bills propose to exempt workers earning less than one million naira a year from income tax; increase state governments' share of the Value Added Tax, VAT to 55 per cent while the Federal Government's share to 10 per cent; exempt small businesses with annual turn-over of N50 Million from taxes; and reduce company income tax from 30 per cent to 25 per cent for at least two years.
Although no date has been fixed for the public hearing, Vanguard gathered, yesterday, that some state governments were studying the reforms with the goal of preparing "a good response" that they will present at the Senate public hearing.
Yesterday, former Vice President Atiku Abubakar urged the National Assembly to be circumspect when considering the Tax Reform Bills sent to it by President Bola Tinubu.
He admonished the lawmakers to pursue and promote a tax regime that would not increase the uneven development of the nation in the long run.
On Friday, Governor Babagana Zulum of Borno State rejected the tax reform bills because "they will destroy the North in entirety" if passed. He added that the reform would worsen insecurity as northern might not be able to pay salaries, and some South-West and South-East states may also have problems.
The bills which seek to prioritize the location of consumption as the basis for sharing VAT have faced stiff opposition, especially from the North, with stakeholders calling for its withdrawal.
Indeed, Northern governors, traditional rulers, and Northern Elders Forum, NEF, rejected the proposed bills, saying they were not in the interest of the nation.
Ondo still studying bills
Asked his views on the bills, yesterday, the governor of Ondo State, Lucky Aiyedatiwa, said he is yet to study the bill and would not want to comment on it now.
Aiyedatiwa, who spoke through his Chief Press Secretary, Ebenezer Adeniyan, pleaded for more time to study the bill before making his position public.
He assured that the governor would speak on the bill after he must have studied the bill.
Anambra yet to take a stand
In Anambra, the state government is yet to take a decision on the controversial tax reform bills.
However, the Commissioner for Information, Dr. Law Mefor, said the state is certainly interested in that bill, adding that he would reach out to the Commissioners for Finance and Economic Planning to get an articulated government position on the matter.
He told Vanguard: "My personal opinion is that it is not favourable to the states. How can you be generating money in a place and you are sending it to another place? It is not right.
"I don't think it will favour the states because most of the industries are headquartered in Lagos, but they are generating their income from outside Lagos.
"If there is any logic behind it, there should be a way of satisfying both sides. The percentage they are proposing that should go to where the industry is located is not fair to the states.
"If that should even happen, it should not be more than 20 percent in favour of the location of the industry. Those generating the money should take a greater percentage. That is what I believe should be just."
Groundswell of opposition in Sokoto
In Sokoto, top government officials, who opposed the bills, refused to speak on record. They elected to wait for the nod of the governor, who has not been in town since Thursday.
One of the officials told Vanguard: "I can't tell the position of the state government on the issue because it's beyond my power, wait for the Governor to come back.
"What I can say is, the people of Sokoto State are against the Tax Reform Bills.
The issue has become the talk of the town by groups and individuals across the state. The Bill is aimed at developing Lagos State, where a large chunk of VAT revenue is generated every month."
We must not enhance a few states and penalise others - Atiku
Atiku, who was the 2023 Presidential candidate of the Peoples Democratic Party, PDP, in a tweet on his X handle, yesterday, said: "I have followed the intense public discourse on the Tax Reform Bills with keen interest. Nigerians are united in their call for a fiscal system that promotes justice, fairness, and equity.
"They are loud and clear that the fiscal system we seek to promote must not exacerbate the uneven development of the federating units by enhancing the status of a few states while unduly penalising others.
"I call for objectivity and transparency in the conduct of the public hearing being organised by our representatives in the National Assembly.
"As a concerned stakeholder, I firmly believe that transparency and objectivity are essential for promoting accountability, good governance, and public trust in policy-making.
"The public hearing process must facilitate open and inclusive participation by all stakeholders, including Civil Society Organizations, traditional institutions, politicians, public officials, and subject matter experts.
"In this wise, I call on the NASS to revisit and make public the resolutions of the National Economic Council, a key stakeholder and an important organ of the state with the constitutional power to advise the President concerning the economic affairs of the Federation.
"The NASS must be appropriately guided and ensure that in the final analysis, the contents of the Bills align with the interests of the vast majority of Nigerians."
Bills will drag North backward - Zulum
In an interview with BBC Hausa service, Governor Zulum expressed displeasure over how the bills enjoyed speedy and smooth passage to the current phase when other bills that had spent several years are yet to scale through.
He said: "We condemn these bills transmitted to the National Assembly. They will drag the North backward, and not only the North, South-East, South-West and some states in the South-West such as Oyo, Osun, Ekiti, Ondo, will have problems with these bills.
"It is not opposition. This, based on our understanding, is something that will destroy the North in its entirety. Therefore, we call on President Tinubu and others to review this decision. He secured 60% of his votes in the North. He should not listen to those telling him that northerners are not supporting him. If our interest is served, that is all. What we need now is the withdrawal of the tax bills.
"Why all the rush? There's a petroleum bill that was presented but it took almost 20 years before it was finally passed. But this one was transmitted and now receiving legislative attention within a week. What we are saying is, let it be treated carefully and with caution so that even after our exit, our children would reap the benefits.
"How we see it is, if these bills scale through, we will not be able to even pay salaries. And if we paid, it won't be sustainable the following year."
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
Asked whether the bills would further exacerbate hunger and poverty in the North, Zulum answered in the affirmative, adding, "Including security. But they're saying otherwise."
Southern Borno citizens declare one-day fasting for Zulum, Ndume
Meanwhile, a non-political group, Southern Borno Concerned Citizens, SBCCs, yesterday, urged its members across nine local government areas and those in the diaspora to engage in One-Day fasting and prayer for Governor Zulum and Senator Ali Ndume, who are sternly against the tax reform bills.
The fasting, which will take place today, was announced by SBCC's chairman, Mr. Bulama Sawa.
The group highlighted the group's deep appreciation for the two Borno leaders who have stood resolutely against the proposed tax reform.
The statement reads: "Following extensive deliberations with scholars and in response to the contentious Tax Reform Bills currently before the National Assembly, the Southern Borno Concerned Citizens, SBCCs, has declared a one-day fasting and prayer session in honour of Governor Zulum and Senator Ali Ndume.
"This spiritual exercise will take place today and all religious groups in Biu, Hawul, Shani, Bayo, Askira-Uba, Gwoza, Kwaya Kusar, and Damboa local government areas, as well as those living in diaspora, are enjoined to participate."
Sawa emphasized that the fasting is a way to show gratitude for Governor Zulum's leadership and Senator Ndume's unwavering defense of the people against the tax reforms. Both leaders have consistently demonstrated their commitment to protecting Nigerians from the potential negative effects of these proposed bills.
It explained that the one-day fasting and prayer initiative is a call for divine guidance and support for the leaders as they continue to protect the welfare of the people.
The group also appealed to President Tinubu to listen to the voices of reason and withdraw the bills to avoid further strain on the nation's already fragile economy.
