The Northern Governors Forum has opposed the proposed Value Added Tax (VAT) Reform Bill forwarded by the Executive arm of government to the National Assembly, describing the provisions as against the interests of the North and other sub-nationals.
In a communiqué issued at the end of governors’ meeting and read by the chairman of the forum and Governor of Gombe State, Muhammad Yahaya, the governors frowned at the proposed amendments to the distribution of Value Added Tax (VAT) to Derivation-based Model.
The governor said: “Forum notes with dismay the content of the recent Tax Reform Bill that was forwarded to the National Assembly. The contents of the Bill are against the interests of the North and other sub-nationals especially the proposed amendment to the distribution of Value Added Tax (VAT) to a Derivation-based Model”.
The forum, therefore, called on legislators in the National Assembly not to pass the bill in its present form, claiming that passing it could jeopardise the well-being of their people.
The Northern governors hinged their argument on the claim that “companies remit VAT using the location of their headquarters and tax office and not where the services and goods are consumed. In view of the foregoing, the Forum unanimously rejects the proposed Tax Amendments and calls on members of the National Assembly to oppose any bill that can jeopardise the well-being of our people.”
They also demanded equity and fairness in the implementation of all Federal Government’s programmes and policies “so as to ensure that no geopolitical zone is short-changed or marginalised”.
