In a decisive move, the Benue State government has announced its support for President Bola Tinubu’s contentious Tax Reform Bills, currently under review by the National Assembly. This endorsement, made public by Benue’s Commissioner for Finance, Budget, and Economic Planning, Mr. Michael Oglegba, underscores a significant divergence in opinion among Northern states regarding the proposed tax legislation.
Speaking in Makurdi on Monday, Mr. Oglegba stated, “The Tax Reform Bill is largely a good bill. We support the effort of the Federal Government to grow tax revenues.” His remarks highlight Benue State’s alignment with federal objectives aimed at enhancing fiscal policies and expanding the nation’s tax base. The endorsement comes despite notable opposition from the Northern Governors Forum, which has raised concerns over the bills, particularly criticizing the Value Added Tax-sharing template.
Earlier, the Northern Governors Forum convened in Kaduna, where they collectively rejected the tax reform initiative. They instructed federal lawmakers representing their states to oppose the bills during parliamentary discussions. This opposition stems from perceived inequities in the proposed VAT-sharing formula, which many Northern governors argue could disadvantage their states economically.
Compounding the regional discontent, the National Economic Council, under the leadership of Vice President Kashim Shettima, had advised the Federal Government to retract the bills temporarily. The Council recommended further consultations with key stakeholders to address the growing concerns. Despite this advice, President Tinubu remains steadfast, insisting on progressing with the reforms as planned.
The proposed tax reforms are a pivotal aspect of President Tinubu’s economic strategy, aimed at increasing government revenue and reducing reliance on oil exports. The reforms seek to streamline tax collection processes, broaden the tax base, and introduce more efficient tax administration practices.
Benue State’s support for these reforms indicates a willingness to embrace these changes, potentially setting a precedent for other states to reconsider their positions. As the debate continues in the National Assembly, the outcome of these bills will likely have far-reaching implications for Nigeria’s economic landscape and intergovernmental relations.
