The Coalition of Northern Groups (CNG) has commended the Nigerian Governors’ Forum (NGF) for championing a more equitable Value Added Tax (VAT) sharing formula.
Jamilu Charanchi – National Coordinator, Coalition of Northern Groups (CNG), disclosed this at a press conference in Bauchi on Friday.
“The revised formula of 50% based on equality, 30% on derivation, and 20% on population is a welcome departure from the earlier, lopsided proposal of 20% on equality, 20% on population, and 60% on derivation,” Charanchi.
On the ongoing discussions surrounding Nigeria’s tax reforms and the recently proposed VAT sharing formula, he said that the CNG has been traversing Northern Nigeria to engage with the people, civil society organisations and other stakeholders through town hall meetings about the controversial bills.
“The governors have, collectively, done extremely well in reversing the imposed formular to a more acceptable win-win VAT formula among the three tiers of government,” he added.
“This adjustment will foster unity and fairness, ensuring no region is left behind in Nigeria’s development trajectory”
He explained that there were other controversial issues in the bills that must be tackled with all seriousness because they posed severe implications for ordinary Nigerians.
“The CNG unequivocally vows to continue to mobilise against the defunding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria,” he noted
He said the CNG also completely rejects taxing Family Wealth or Inheritance saying it unjustly burdens families, negate religious tradition and contradicts cultural values.
The group also rejected plan to increase VAT but proposed a reduction from 7.5% to 3.%.
“The coalition strongly warns against any attempt at increase of VAT given the prevailing harsh economic conditions that make life miserable for Nigerians”,he said.
“This is a time that the federal government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.
“The Coalition further rejected the proposed centralization of tax collection which would stop Nigeria customs Service from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
“The purported 13% of the taxes that are said to be paid for consultancy services in the name of reform is unacceptable, as it appears to prioritize personal gains of select few who feed fart on our commonwealth over the collective good of the people”
The group called on the National assembly to stand firm to protect interests of the downtrodden.
“We are categorical to all senators and members of the house of representatives particularly those from the North that are supporting the bills without recourse to amending the identified loopholes and anomalies or, being indifferent, is a crime against the people, to the people and for the people which we would not hesitate to mobilise the people to confront them at the appropriate time,” he stated.
“While monitoring the development closely, CNG reaffirms its commitment to opposing all anti-people policies that increase economic hardships for Nigerians.
“The coalition remains steadfast in advocating for policies that prioritize transparency, equity, and the well-being of citizens.
“The CNG will continue to engage stakeholders, conduct sensitization programs, and mobilize Nigerians to eliminate all controversial areas in the proposed reforms that negatively impact the ordinary people. “
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