Why Governors Called for Withdrawal of Tax Reform Bills – Gov Sule

Nasarawa State Governor Abdullahi Sule has clarified that governors of the 36 states are not opposed to the Tax Reform Bills, but were seeking clarification on certain aspects. During a Townhall meeting organized by Channels Television on Monday, Governor Sule explained that the governors simply wanted to address concerns before the bills were sent to the National Assembly.

The governor praised the bills but highlighted specific issues that needed further explanation, particularly the increase in VAT from 20 percent to 60 percent at the point of generation. He expressed satisfaction with the change, which now includes consumption as well as generation.

“The governors said, you know what, why don’t you withdraw the bills, let us discuss it, let us understand it,” Sule stated, adding that such discussions should have occurred before the bills were presented to lawmakers. He emphasized that with better explanations and engagement from the Tax Reform Committee, there would not have been a call to withdraw the bills in the first place.

In response, Taiwo Oyedele, Chair of the Tax Reform Committee, acknowledged the feedback from Governor Sule and the Governors’ Forum. He explained that while they appreciated the feedback, holding further meetings with governors could have delayed the legislative process. Oyedele noted that the committee had made efforts to engage the public, but interest in the bills was low at the time. However, he said the committee was now open to revisiting the process and providing more clarifications, given the renewed interest in the reform.

The proposed Tax Reform Bills have sparked significant debate, particularly in the northern regions of Nigeria. The National Economic Council had advised President Bola Tinubu to withdraw the bills for more consultation, but the president opted to allow the bills to proceed through the legislative process. Recently, the Senate passed the bills for second reading, signaling that the legislative journey is progressing. The proposed legislation aims to streamline revenue administration, resolve disputes, and create a more coordinated approach to taxation in the country.