By: Monday Danladi, Bauchi
The Coalition of Northern Groups (CNG) has expressed its support to the revised VAT sharing formula as contained in the tax reforms Bills pending before the National Assembly vowing however to continue to challenge other controversial provisions.
Addressing a press conference in Bauchi on Friday, Comrade Jamilu Aliyu Charanchi, National Coordinator, Coalition of Northern Groups (CNG) stated that, “We are here to express our position on the development about the ongoing discussions surrounding Nigeria’s tax reforms and the recently proposed VAT sharing formula. Over the past few weeks, the CNG has been traversing Northern Nigeria to engage with the people, civil society organisations and other stakeholders through townhall meetings about the controversial bills.”
He stated that, “Earlier, the Students Wing of the CNG has protested across the States while the State chapters of the Coalition have been engaging stakeholders in their domain as part of efforts to engage with Nigerians and galvanise action to address the adverse effects of these so-called reforms that are antipeople.”
According to him,”We have already organized townhall meetings acrossthe North and we would continue to engage with stakeholders across the 19 northern states. These engagements aimed to sensitize Nigerians on the bills and gather feedback from stakeholders and workon how best to address these issues collectively.”
Jamilu Aliyu Charanchi added that, “The CNG commends the Nigerian Governors’ Forum (NGF) for their doggedness in championing a more equitable VAT sharing formula. The revised formula of 50% based on equality, 30% on derivation, and 20% on population is a welcome departure from the earlier, lopsided proposal of 20% on equality, 20% on population, and 60% on derivation.”
According to him,”The Governors have, collectively, done extremely well inreversing the imposed formular to a more acceptable win-win VAT formula among the three tiers of government.
This adjustment will foster unity and fairness, ensuring no region is left behind in Nigeria’s development trajectory.”
“The CNG further observed that while people celebrate the revisedVAT formula, there are other controversial issues in the bills that must be tackled with all seriousness. The CNG, however, remains deeply concerned about such controversial aspects that pose severe implications for ordinary Nigerians,” he added.
The CNG therefore unequivocally vowed to continue to mobilise against the defunding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria.
The CNG also completely rejected taxing Family Wealth or Inheritance as it unjustly burdens families, negate religious tradition and contradicts cultural values.
He stressed that, “With soaring food inflation now at about alarming 40% which has made millions of people food in secured, we not only reject any scintilla of thought that proposes an increase in VAT but proposed a reduction from 7.5% to 3.%. The coalition strongly warns against any attempt at increase given the prevailing harsh economic conditionsthat make life miserable for Nigerians.”
The CNG added that, “This is a time that the Federal Government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation.”
The Coalition further rejected the proposed centralization of tax collection which would stop NigeriaCustoms Service from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
It added that the purported 13% of the taxes that are said to be paid for consultancy services in the name of reform is unacceptable, as it appears to prioritize personal gains of select fewwho feed fart on our commonwealth over the collective good of the people.
The CNG then stated that the ball is in the court of the National Assembly as all eyes are on them to be brave and stand firm to protect interests of the downtroddenjust as governors have courageously fought their battle which led to a new, fair and acceptable VAT formula.
According to him, “That we are categorical to all Senators and Members of the House of Representatives, particularly those from the North that are supporting the bills without recourse to amending the identified loopholes and anomalies or, being indifferent, is a crime against the people, to the people and for the people which we would not hesitate to mobilise the people to confront them at the appropriate time.”
Jamilu Aliyu Charanchi added that, The CNG reiterates its calls on the legislators to ensure that all controversial aspects of the bills that are detrimental to Nigerians are thoroughly and carefully examined and expunged before considering any further action.”
In conclusion, the CNG National Coordinator stated that,”While monitoring the development closely, CNG reaffirms its commitment to opposing all anti-people policies that increase economic hardships for Nigerians. The coalition remains steadfast in advocating for policies that prioritize transparency, equity, and the well-being of citizens.”
He stressed that,”The CNG will continue to engage stakeholders, conduct sensitization programs, and mobilize Nigerians to eliminate all controversial areas in the proposed reforms that negatively impact the ordinary people.”