The executive bills before both chambers of the National Assembly, the tax reforms bills have divided lawmakers from the Northern part of the country.
Former Senate Leader, Ali Ndume in a recent statement has aligned with the Northern Governors and the Arewa Consultative Forum (ACF) which at separate meetings have rejected the proposed Bills.
Ndume in the statement noted that the economic policies of the present administration have impoverished the people, wiped off the middle class and claimed that the tax reforms would add to the economic burden of the average Nigerian.
He said: “This tax they’re talking about, we are almost losing the middle class in Nigeria. Either you have it or you do not have it. Those that are in the middle are being squeezed out. If Nigerians can pay for those taxes, it is okay.
“But in the current situation, increasing taxes is not an alternative at all. I will not support any increase in tax.”
But speaking on Monday in Abuja, human rights activists and Senator who represented Kaduna Central Senatorial District in the 8th National Assembly, Shehu Sani, claimed that Senator Ndume and others kicking against the proposed tax reforms were not speaking from a position of knowledge.
He claimed that they have not read the bills but merely playing to the gallery.
He maintained that the North like every other sections of the country would benefit from the reforms.
He insisted that the tax reform bills were not inimical to the north as being portrayed by Ndume and his likes rather the North stands at advantage in the reform proposal that would place the Value Added Tax (VAT) in hands of each state to control.
He said, “there is a provision where companies are to pay value added tax to the host State instead of sending it to a single account that would not be shared among the 36 States including the Federal Capital Territory.
“Its in fact economically beneficial and fair to all parts. People should keep aside sentiments and read the bill carefully.
“It’s a comprehensive and bold move to harmonise and simplify tax administration and streamline its operations and enforcement. The Bill will actually generate and safeguard more revenue for the country and the states.
“It will also combat the corruption in the so-called tax waivers granted to business cabals. There is nowhere in the document where any region will be short changed or taxes will be increased or jobs will be lost.
Sani insisted that the reform could create a paradigm shift from the past and outdated tax system to a robust way of generating revenue , as it will address business cabals who could do anything to evade tax remittances and seek unnecessary tax waivers.
He warned that the economy would be taken aback if the tax reform bills were truncated, condemning Northern State Governors’ rejection of the reform. He advised the State Governors to engage consultants to study the bill, if they had no time to do it themselves .
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