The National Economic Council (NEC), Thursday recommended the withdrawal of the Tax Reforms Bill from the National Assembly.
NEC said this is to allow for wider consultations.
The executive bill has the backing of President Bola Tinubu.
NEC recommendation which was reached at the end of its 145th meeting followed agitation by Northern Governors against the bill.
At a meeting on October 28, 2024, Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly.
Announcing NEC resolution, Oyo Governor Seyi Makinde said Council members agreed that it was necessary to allow for consensus building and understanding of the bill among Nigerians.
Makinde added that this decision for the benefit of the country and emphasised the need for further consultations regarding the bill.
“NEC today took a presentation from the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.
“The Council acknowledged that the country is underperforming on all indices as regards yields from major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So Council therefore recommend the need to withdraw the bill currently before the National Assembly on tax reforms, so that we can have wider consultations and also build consensus around these reforms, for the benefit of the entire country, and also to give people, for them to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation.
“So, the bill will be withdrawn from the National Assembly and then there will be consultations afterwards,” he said.
