The Northern Governors Forum has officially opposed the Tax Reform Bill recently submitted to the National Assembly, voicing strong objections to the proposed changes regarding the allocation of Value Added Tax (VAT) to a derivation-based model.
In a statement delivered by the chairman of the forum, Governor Mohammed Yahaya of Gombe State, the governors expressed their dismay over the bill's implications for the Northern region and other sub-nationals. The statement noted: “The Forum notes with dismay the content of the recent Tax Reform Bill. The proposed amendment to the distribution of VAT to a Derivation-based Model is against the interests of the North.”
The governors highlighted that companies currently remit VAT based on the location of their headquarters and tax offices, rather than where goods and services are consumed. This, they argue, would disproportionately disadvantage the Northern states.
In light of these concerns, the Forum has unanimously rejected the proposed tax amendments and urged members of the National Assembly to oppose any legislation that could jeopardize the economic well-being of their constituents. The governors are advocating for a tax system that fairly reflects the realities of service consumption across all regions