Tax reform bills will destroy North – Zulum warns

Tax reform bills will destroy North – Zulum warns

Borno State Governor, Babagana Zulum, has raised serious concerns over the proposed tax reform bills, cautioning that they could severely harm the economy of the Northern region and other parts of Nigeria.

During an interview with BBC Hausa on Friday, Zulum questioned the speed of the legislative process surrounding the bills, contrasting it with the Petroleum Industry Bill, which took nearly two decades to pass.

“Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution so that even after our exit, our children will reap its benefits,” Zulum said.

The governor expressed concerns that the proposed reforms are structured to disproportionately affect certain regions of the country.

“We condemn these bills sent to the National Assembly. They will drag the North backward and also affect the South East, South West, and some South-Western states like Oyo, Osun, Ekiti, and Ondo,” he said.

Zulum also alleged that some individuals might be influencing President Bola Tinubu with claims that the North does not support his administration.

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“This is not opposition. Based on our understanding, this bill will destroy the North entirely. We call on President Tinubu to review this decision. He secured 60% of his votes from the North. He should not listen to those telling him the North is not supporting him. What we need is the withdrawal of these tax bills,” Zulum added.

The governor warned that if the bills become law, states in the North would struggle to carry out developmental projects and might even find it difficult to pay salaries.

“If these bills pass, we won’t even be able to pay salaries. And if we do, it won’t be sustainable the following year. We are against it, and even Lagos State is against it. If this bill is dragging regions backward, why won’t they rescind it? Our National Assembly members, including some from the South, are not in support of it,” he lamented.

Speaking on behalf of the North East, Zulum emphasized that their opposition to the bills should not be misinterpreted as opposition to the government.

“This is our position, and it doesn’t mean we are against the government. We supported and voted for President Tinubu. But these bills will not be beneficial to us,” he clarified.

Recall that the Senate passed the tax reform bills for a second reading on Thursday after a debate among lawmakers.

The bills have now been referred to the Committee on Finance, which is expected to submit its findings within six weeks.

The four tax reform bills sent to the National Assembly include the Nigeria Tax Bill 2024, aimed at providing a fiscal framework for taxation, and the Tax Administration Bill, which seeks to establish a unified legal framework for taxes and reduce disputes.

Other proposed legislation includes the Nigeria Revenue Service Establishment Bill, which would replace the Federal Inland Revenue Service Act with the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, designed to create a tax tribunal and a tax ombudsman.

 

Tax reform bills will destroy North – Zulum warns