State Governments Disagree On Tax Reform Legislation

The contentious Tax Reform Bills before the National Assembly caused division among the federation’s states. While some are in favor of it, many are completely opposed, and some are kicking against certain parts of it. Several states stated that they are currently reviewing the proposals before making a decision.

The difference between the states occurred as the Presidency refuted claims that the Tax Reform Bills would make Northern states poorer and Lagos or Rivers wealthier. Dr. Femi Egbesola, the president of ASBON and the small business owners of Nigeria, supported the decision, pointing out that it is helpful to small businesses.

The states of Kogi, Benue, Delta, and Ekiti are among those that favor the tax change.
Kano, Nasarawa, and Borno are among those opposed.

According to Anambra, the Plateau and several South-South states are still reviewing the paper. Chief Edwin Clark, a South-South leader, has cautioned that the move may cause further issues for the nation if it is not handled correctly.

Orji Kalu, a senator from Abia North, expressed confidence that the proposed tax reform bills will pass into law despite opposition from some quarters and criticized the federal government for not including important stakeholders in the ongoing discussions with Senator Seriake Dickson (PDP, Bayelsa West).

Tax Reform Bill won’t impoverish North — Presidency

Stating that the bills will not impoverish the North, the Presidency via a statement by Special Adviser to the President on Information and Strategy, Mr. Bayo Onanuga, described the insinuation as reckless, maintaining that the bills will not destroy the economy of any section of the country.

Expressing worry over different interpretations by some political actors, the statement noted: “Since the public debate around the transformative tax bills before the National Assembly began in the last few weeks, various political actors and commentators have tried to obfuscate the facts, deliberately misinforming and misleading the public.

“Unfortunately, most reactions are not grounded in facts, reality, or sufficient knowledge of the bills. While some commentators have attempted to incite the people against lawmakers, others have polarized one section of the country against another.

“The tax reform bills will not make Lagos or Rivers more affluent than other parts of the country, as recklessly canvassed, poorer. The bills will not destroy the economy of any section of the country. Instead, they aim to enhance the quality of life of Nigerians, especially the disadvantaged, who are trying to make a living.”