The Coalition of Northern Groups (CNG) Gombe state chapter, in collaboration with Civil Society Organisations (CSOs) and other key stakeholders, Tuesday, asked the government to halt deliberations on the Tax Reform Bills currently before the National Assembly.
Specifically, the Coalition called on lawmakers, to work towards broader consultations to develop more inclusive and sustainable policies.
In a statement issued by Comrade Muhammed Usman Deba, coordinator of CNG Gombe state; Comrade Habiba Isah Gaude, representing Voice for Rural Women and Comrade Lawal Idris Lawantee, acting chairman of CSOs in Gombe, it outlined key concerns.
The meeting with the theme “Tax Reform Bills: A Catalyst for Economic Growth or a Burden on the People?” brought together policy makers, academics, civil society leaders, youth groups, and concerned citizens.
The group emphasised its strong opposition to the proposed reforms, citing their potential to exacerbate socioeconomic challenges, particularly in Northern Nigeria.
Recall that the proposed Tax Reform Bills have faced opposition from various stakeholders, including the National Economic Council, the Northern Governors’ Forum and many more. Their primary concern revolves around the proposed amendment to the Value Added Tax (VAT) distribution formula.
The current system allocates VAT revenue based on the location of the company’s headquarters and tax office, rather than where the goods and services are consumed.
The statement reads, “The federal government should halt the proposed VAT increases and instead reduce the current VAT rate to 3%. This reduction will provide relief to citizens and businesses while encouraging economic activity. Alternative revenue-generating strategies must be explored to avoid placing additional financial pressure on ordinary Nigerians.
“The government and regulatory authorities must ensure that telecommunications remain affordable for all Nigerians, given its critical role in economic and social connectivity.
“The proposed tax reform bill is unanimously rejected due to its lack of inclusivity and potential negative impact on various regions and sectors. The reforms must undergo thorough consultation with all regions and key stakeholders, including civil society organizations, educational institutions, and local governments, to ensure a consensus-driven and equitable approach.”
They called for the immediate withdrawal of the proposed reforms while urging the federal government to adopt a people-centered approach to economic policies.
The communique stated further that, “Agencies such as TETFUND, NITDA, and NASENI are essential for Nigeria’s educational, technological, and industrial advancement. The town hall demands an immediate halt to any plans to defund or restructure these institutions.
“Their funding and mandates should be strengthened to enhance their capacity to address critical challenges, including research, innovation, and capacity building, which are vital for sustainable national development.
“These recommendations aim to ensure fairness, transparency, and inclusivity in Nigeria’s economic and governance frameworks, while prioritizing the well-being and interests of all citizens, especially those in Northern Nigeria.”