The National Economic Council (NEC) has called for the harmonisation of ideas concerning Nigeria’s tax reforms, to enable the country tap from all its revenue sources for national development.
The Oyo State Governor, Seyi Makinde, said this while briefing Journalists at the end of Thursday’s special NEC meeting, chaired by Vice President Kashim Shettima.
Revenue is a major source of income for government at all levels and in a bid to boost its income, the Nigerian government set up a Presidential Committee on Fiscal Policy and Tax Reforms, with the mandate of looking at ways of improving the revenue base of the country as well as advice on fiscal matters.
An executive bill on tax reforms was recently sent to the National Assembly containing the issue of reviewing the formular for the distribution of value added tax, a proposal that Governors from the Northern part of Nigeria rejected.
The Oyo State Governor, Seyi Makinde, informed Journalists at the end of the over four hours meeting of the National Economic council that the matter was debated upon and a resolution was reached to withdraw the bill form the National Assembly for wider consultation.
“After extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So Council therefore recommend the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people the opportunity to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation.
“So, the bill will draw from the National Survey. And then there will be consultations afterwards,” he stated.
The Governor noted that the council also agreed that Nigeria has floundered in the harnessing of her revenue sources thus, the need to be=race up.
He said; “NEC today took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.”
The Council acknowledged that the country is underperforming on all indices as regards huge from major revenue sources, also tax to GDP ratio and so on,” he explained.
Governors of the 19 Northern States had within the week raised issues concerning the proposed tax reforms bill, necessitating the convening of Thursday’s special NEC to address the matter.
Mercy Chukwudiebere
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