A group under the auspices of
Coalition of Northern Groups (CNG) has called for the suspension of Tax Reform Bills in order to allow wider engagement and collective inputs of critical stakeholders and Nigerians towards implementing a more equitable, transparent and sustainable tax administration reform in the country.
The state coordinator of the group, Salau Enesi Habib, made the call at a press conference held on Monday in Lokoja, the Kogi State capital.
Comrade Habbib said the tax reform bills represents structural shift that could deepen economic inequalities between northern and southern Nigeria, saying “while Lagos consolidates its financial dominance, Northern Nigeria would risk losing vital resources critical for it’s development”
“The tax reform raises significant concerns about the economic implications for northern Nigeria while amplifying advantage for states like Lagos.
“Northern States that have relied heavily on equitable VAT redistribution risk losing up to 30 to 40 percent of their current allocation and thus severely affecting states like Kogi State
“The derivation principle focuses on rewarding where VAT is effectively paid not where goods are produced. For instance, Kogi state is known for high deposits of mineral resources, such as Iron ore, Kaolin, Coal, Feldspar, lime stone and host of others, those products are processed into finished product in industries outside the State, this skew the benefits of the state with proposed Tax Reform.
He noted that one of the developmental objectives of nations is to have balanced development and when the proceed of tax receipt will benefit certain region in high proportion will negate the idea of balanced national development.
The coordinator called on government at all level to focused on industries that can improve the economy of our state and the country at large by securing and preventing illegal mining operation in our local communities where mineral resources are deposit.
“We call on the president of the Federal Republic of Nigeria, President Bola Ahmad Tinubu invest heavily on the Ajaokuta integrated steel complex and steadily develop it with the vision of erecting a Metallurgical Process Plant cum Engineering Complex with other auxiliaries and facilities.
“The complex if invested on is meant to be used to generate important upstream and downstream industrial and economic activities that are critical to the diversification of our economy into an industrial one” he stated.
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