The Sokoto State chapter of the
Coalition of Northern Groups (CNG), has urged President Bola Tinubu to suspend the tax reform bills currently before the National Assembly in the spirit of national interest.
The CNG which made the appeal in a communique signed on Saturday by the state coordinator Comrade Faisal Salisu, after a congress, said if enacted, the proposed tax reform bills, could pose a significant threat to the state and the entire Northern Nigeria.
The coalition expressed concerns that the reforms which include a new VAT derivation formula and the consolidation of multiple levies into a single development levy would set the north backwards.
The coalition also urged the federal government to suspend the implementation of the reforms and allow critical stakeholders to add their inputs to the bills in order to ensure a fair and equitable distribution of resources and without marginalizing the North or other regions of the country.
“The Coalition of Northern Group, Sokoto State chapter has extensively reviewed the proposed Tax Reform Bills and skillfully uncovered many alarming disparities,” the communique reads.
“While these proposed changes are presented as a pathway to economic growth, the reality is starkly different, especially for our disadvantaged region.”
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The group also expressed fears that the new VAT sharing formula will be detrimental to the state and other northern parts.
“The new VAT sharing formula, for instance, will predominantly benefit Lagos and Rivers State, leaving Sokoto State and the entire North, along with South-East and South-South geopolitical zones, with the short end of the stick.
“This skewed distribution formula will overly drain resources from already struggling state like Sokoto and many states in both Northern and Southern Nigeria, making it nearly impossible for many states to meet basic obligations such as paying worker’s salaries or funding critical services.
“The defunding of of pivotal institutions such as TETFUND, NITDA and NASENI will stifle advancements in education, technology and industrial sectors that are crucial for the North’s development.
“The government must publish data justifying the proposed VAT derivation formula to enable public evaluation of its fairness,” the coalition said.
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