- Vows to continue challenging other controversial provisions including taxing Family Wealth or Inheritance, payment of 13% for tax consultancy services
The Coalition of Northern Groups (CNG) on Friday stated categorically that all Senators and Members of the House of Representatives, particularly those from the North that are supporting the tax reforms bills without recourse to amending the identified loopholes and anomalies or being indifferent, are committing a crime against the people they represent.
The CNG National Coordinator, Comrade Jamilu Aliyu Charanchi, told journalists in Bauchi what they are doing “is a crime which we would not hesitate to mobilise the people to confront them, at the appropriate time.”
The CNG reminded the Northern members of NASS to ensure that all controversial aspects of the bills that are detrimental to Nigerians are thoroughly and carefully examined and expunged before considering any further action.
The group however expressed its support to the revised Value Added Tax (VAT) sharing formula as contained in the tax reforms bills before the National Assembly, nonetheless, vowing to continue to challenge other controversial provisions.
According to the group: “We are here to express our position on the development about the ongoing discussions surrounding Nigeria’s tax reforms and the recently proposed VAT sharing formula. Over the past few weeks, the CNG has been traversing Northern Nigeria to engage with the people, civil society organisations and other stakeholders through townhall meetings about the controversial bills.”
“Earlier, the Students Wing of the CNG has protested across the States while the State chapters of the Coalition have been engaging stakeholders in their domain as part of efforts to engage with Nigerians and galvanise action to address the adverse effects of these so-called reforms that are anti-people.
“We have already organized town hall meetings across the North and we would continue to engage with stakeholders across the 19 northern states. These engagements aimed to sensitize Nigerians on the bills and gather feedback from stakeholders and work on how best to address these issues collectively.”
The CNG leader added: “The CNG commends the Nigerian Governors’ Forum (NGF) for their doggedness in championing a more equitable VAT sharing formula. The revised formula of 50% based on equality, 30% on derivation, and 20% on population is a welcome departure from the earlier, lopsided proposal of 20% on equality, 20% on population, and 60% on derivation.
“The Governors have, collectively, done extremely well in reversing the imposed formular to a more acceptable win-win VAT formula among the three tiers of government. This adjustment will foster unity and fairness, ensuring no region is left behind in Nigeria’s development trajectory.
“The CNG further observed that while people celebrate the revised VAT formula, there are other controversial issues in the bills that must be tackled with all seriousness. The CNG, however, remains deeply concerned about such controversial aspects that pose severe implications for ordinary Nigerians.”
The CNG therefore unequivocally vowed to continue to mobilise against the defunding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria.
The CNG also completely rejected taxing Family Wealth or Inheritance as it unjustly burdens families, negate religious tradition and contradicts cultural values.
He stressed that “with soaring food inflation now at about alarming 40% which has made millions of people food in secured, we not only reject any scintilla of thought that proposes an increase in VAT but proposed a reduction from 7.5% to 3.%. The coalition strongly warns against any attempt at increase given the prevailing harsh economic conditions that make life miserable for Nigerians.
“This is a time that the Federal Government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.”
The Coalition further rejected the proposed centralization of tax collection which would stop Nigeria Customs Service (NCS) from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
It added that the purported 13% of the taxes that are said to be paid for consultancy services in the name of reform is unacceptable, as it appears to prioritize personal gains of select few who feed fat on our commonwealth over the collective good of the people.
The CNG then stated that the ball is in the court of the National Assembly as all eyes are on them to be brave and stand firm to protect interests of the downtrodden just as Governors have courageously fought their battle which led to a new, fair and acceptable VAT formula.
In conclusion, the CNG National Coordinator stated that “while monitoring the development closely, CNG reaffirms its commitment to opposing all anti-people policies that increase economic hardships for Nigerians. The coalition remains steadfast in advocating for policies that prioritize transparency, equity, and the well-being of citizens.
“The CNG will continue to engage stakeholders, conduct sensitization programs, and mobilize Nigerians to eliminate all controversial areas in the proposed reforms that negatively impact the ordinary people.”
