NEC Advises Tinubu to Withdraw Tax Reforms Bill

By Modupe Gbadeyanka

President Bola Tinubu has been advised to withdraw the controversial Tax Reforms Bills sent to the National Assembly some days ago.

This recommendation was from the National Economic Council (NEC) led by Vice President Kashim Shettima.

The group comprises the 36 state governors and it works as an advisory role, particularly on issues relating to the nation’s economy.

At its meeting on Thursday in Abuja, the council wants the piece of legislation to be taken away from the parliament for wider consultations with stakeholders.

Briefing newsmen at the Presidential Villa today, the Governor of Oyo State, Mr Seyi Makinde, said, “NEC noted the need for sufficient alignment on the proposed reforms and recommended the withdrawal of the tax reform bill.

“We saw the gap and decided that there is a need for a wider consultation.”

The decision of the group comes a few days after the Northern Governors Forum rejected the bill, arguing that it was designed to starve the region of funds.

The association pointed out that charging Value-Added Tax (VAT) from the headquarters of a company was skewed to favour a few states, especially when the actual consumption may not happen from the source.

Recall that President Tinubu, in a bid to generate more funds for his government to operate, proposed to raise VAT to 10 per cent from 7.5 per cent next year and to 12.5 per cent in 2026 and 15 per cent by 2030, which the International Monetary Fund (IMF) said should be the ideal rate.