Amid claims that the controversial Tax Reform Bills propose a derivation formula for sharing Value Added Tax (VAT) skewed against the North, the Leader of the Senate, Opeyemi Bamidele, has dismissed the allegations as unfounded saying it would favour the North.
In a Christmas message personally signed by him, Senator Bamidele maintained that the proposed legislation is “guided purely by the principles of equity, fairness, and justice.”
The Senate Leader noted that, contrary to the narrative being promoted in the public space by certain lawmakers from the North, the derivation formula on VAT actually favors certain states in the North West.
“For the record, the Tax Reform Bills, when finally enacted, will utterly exempt all employees earning N1,000,000 annually or N83,000 monthly; exempt start-ups, shared services, and technologically driven services from taxation; and recommend zero VAT on essential services and consumables.
“Even though it reviews the derivation formula to 60%, this proposal is guided purely by the principles of equity, fairness, and justice.
“The new model will ultimately guarantee a significant increase in VAT distributable to every state in the federation.
ALSO READ: BREAKING: Tax reform is here to stay — Tinubu
“As credible data have shown, for instance, the new model recommends 6.17% for Kano compared to the current 0.89%. It recommends 1.21% for Zamfara compared to the current 0.05%. Meanwhile, Lagos, which currently gets 80.26%, will receive 15.28% under the new model, representing an 81% decrease.
“Similarly, Rivers’ share will decline from 7.74% to 4.6%, accounting for a 41% reduction. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.”
Senator Bamidele added, “Amid the debates about the Tax Reform Bills, as Christ our Lord has taught us, and as the Parliament of the people, we shall never pursue any agenda outside our oath of allegiance or undertake policy initiatives that are adversarial to or conflict with the interests and welfare of all our constituents and indeed our Fatherland.”
The Senate Leader also appealed to Nigerians to embrace the spirit of the Christmas season to renew their hope in the country.
“This is the season never to shy away from the eternal responsibilities God Almighty has committed to our hands. It is the season to renew our resolve to faithfully stand with the political leadership for the renewal of hope.
“It is the season to halt the search for pastures that are never green and instead join hands to build our nation with conviction, rebranding it for the ceaseless inflow of global capital and the endless influx of global tourists.”
