Abuja: Arewa Consultative Forum (ACF) says it will soon make known its position on the Tax Reform Bills forwarded to the National Assembly by President Bola Tinubu in October 2024. Secretary-General of ACF, Mr Muritala Aliyu, stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday.
According to News Agency of Nigeria, the ACF is a quasi-political and socio-cultural organisation seeking to promote the political interest of the people of the northern part of the country. The tax reform bills under consideration are the Nigeria Tax Bill, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill. These bills aim to provide a fiscal framework, establish clear and concise legal frameworks for all taxes in the country, and reduce disputes in tax administration.
Aliyu acknowledged the need for tax reforms to expand the tax net and ensure effective tax collection in the country. He emphasized the importance of reviewing, re-evaluating, and reforming the tax system, stating, “We believe that people should be taxed appropriately because a lot of people don’t pay tax.” He also underscored the need for more efficient tax collection mechanisms that allocate resources based on consumption and derivation principles.
The secretary-general expressed concerns regarding the operationalisation of certain clauses in the bills once they become law. He pointed out that the derivation clause does not adequately address the interests of the north and that the family capital gain tax clause, which deals with inheritances, does not align with Islamic principles practiced by Muslims in the region.
To address these issues, Aliyu mentioned that a committee, headed by former Governor Mohammed Makarfi of Kaduna State, along with finance and taxation experts, academicians, and lawyers, has been set up to scrutinize the bills and offer recommendations. The report from this committee has been submitted to the northern caucus in the National Assembly, the Northern Governors’ Forum, and the traditional institution. Aliyu noted that the report should be available to the media by the end of the week as part of efforts to tackle some of the challenges facing the country.