The students wing of Coalition of Northern Groups Yobe state chapter, in collaboration with other stakeholders during a town hall meeting at Federal University Damaturu advised the federal government to soft pedal on the proposed tax reforms bill especially as it concerns students.
According to a statement on Tuesday signed by Comrade Adamu Ibrahim Galadima state students wing coordinator (CNG) for Yobe.
The townhall brought together a cross-section of student unions, policymakers, academics, civil society actors, community leaders, youth groups, and concerned citizens to deliberate on the implications of the proposed tax reform bills.
Participants expressed concerns over the potential socioeconomic consequences of the reforms, highlighting the heavy burden they may impose on already struggling citizens and businesses in the region.
“The notion of tax is not new to any of us; it is the price we pay for living in a civilised society. Reforms that are successful usually have a few traits in common. These traits include extensive discussions with experts and others, a clear communication plan that explains the reforms, inclusive and suitable design frameworks and a well-organized procedures to guarantee the reforms,” the group said.
The proposed Tax Reform Bills have faced opposition from various stakeholders, including the National Economic Council, the Northern Governors’ Forum, South East Caucus of the Senate, Religious leaders, NGOs, CSOs, the Academic Staff Union of Universities (ASUU) and many more whose primary concern revolves around the proposed amendment to the Value Added Tax (VAT) distribution formula, defunding of NITDA, TETFUND and NASENI.
According to the group, “The bills lack clear definition of some key terms such as ‘derivation, family wealth, ecclesiastic’. 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.”
In addition to the VAT distribution criteria, other concerns raised include the potential negative impact of the tax reforms on the region’s economy, education, digital innovation and the well-being of its people.
It was argued that the reforms could lead to increased tax burdens on businesses and individuals, hindering economic growth and development.
The opposition to the tax reform bills has led to calls for broader consultations and consensus-building among stakeholders even as it observed that the bills are far from being a catalyst for economic growth and would increase the existing economic challenges facing the north and the country at large.
The participants criticised lack of meaningful consultation and engagement with stakeholders, particularly youths and students during the formulation of the bills, thereby resulting in policies that fail to reflect the realities and needs of the majority of Nigerians.