The Arewa Consultative Forum (ACF) has presented a report to the National Assembly, detailing its perspectives and suggestions regarding the Tax Reform Bills.
This report was prepared by a specialized committee of experts.
In a statement released yesterday by its National Publicity Secretary, Tukur Muhammad-Baba, the ACF emphasized that “the proposed tax reforms will have significant implications for all regions of the country, not just the North.”
The forum advocated for maintaining the current VAT rate of 7.5 percent, highlighting the economic difficulties faced by Nigerians and businesses.
The statement included: “We have carefully analyzed the bills and formulated recommendations aimed at benefiting the nation as a whole.
“We understand the government’s need to boost revenue; however, we also contend that the existing VAT rate already imposes a considerable burden on citizens and businesses.
“Raising the rate further may lead to unintended effects, such as a decline in consumer spending and a negative impact on economic growth.”
The ACF proposed enhancing VAT collection, formalizing the informal sector, and leveraging digital technologies as strategies to broaden the country’s tax base.
Another significant issue raised by the ACF is the definition of “derivation” and its distribution.
The ACF called for a precise definition of the term to guarantee that distribution is based on a consensus achieved through consultations with state and local governments.
It stated: “The concept of derivation is essential for ensuring that states and local governments receive their equitable share of revenue.
“However, the current definition lacks clarity, and we believe it should be refined to prevent disputes and promote transparency.”
Additionally, it recommends a substantial reduction in the authority of the Chief Executive Officer and the Chairman of the Board of Directors/Governance of the Joint Revenue Board.
