By Ayo Kehinde
Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has dismissed insinuations that the proposed tax reform bills before the National Assembly were designed to target or undermine a particular region in the country.
“There is no negative thinking about any region or anything,” Oyedele said Monday at an interactive session on the proposed tax reform bills organised by the House of Representatives.
President Bola Tinubu in September transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the tax reform committee headed by Oyedele.
The bills are the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
While state governors have called for the withdrawal of the bills to allow for more consultation. The Northern Governors Forum specifically rejected the derivation-based model for VAT distribution proposed in the new tax bill.
Briefing lawmakers and stakeholders, Oyedele argued that the proposal would only ensure efficiency and give more revenue to states where goods and services are consumed.
He explained that currently, under Section 40 of the VAT Act, VAT revenue is allocated 15 per cent to the Federal Government, 50 per cent to the States and FCT, and 35 per cent to Local Governments.
