Tinubu’s reform bills: FG Commission takes drastic action

The RMAFC has made a strong opposition to the tax reform bills President Bola Tinubu had forwarded to the national assemblyAccording to the Revenue Commission, the tax reform bills are against the constitution and asked the executive to retrace its position on the billsThe tax reform bills have faced criticism by some stakeholders, particularly the northern governors, and other elites in the regionThe Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has strongly opposed President Bola Tinubu’s contentious tax reform bills, citing alleged constitutional breaches. In a comprehensive nine-page memorandum.

RMAFC outlined several objections to the proposed legislation, emphasizing that Section 162(2) of the 1999 Constitution grants the Commission the sole authority to determine the formula for equitable revenue sharing among the three tiers of government.

RMAFC has rejected President Bola Tinubu’s tax reforms
Photo Credit: @officialABAT
Source: TwitterAccording to the RMAFC, its role as the exclusive arbiter in developing fair revenue allocation formulas must be respected. The Commission proposed a formula that would ensure equitable distribution of Value Added Tax (VAT) among federal, state, and local governments. RMAFC also urged the federal government to empower the Commission to finalize a VAT allocation formula in line with its constitutional mandate.

RMAFC warns Tinubu over tax reform billsThe Commission warned that the proposed tax reform bills threaten national unity and constitutional harmony. RMAFC believes that by adhering to its constitutional mandate, it can provide an equitable solution to revenue allocation disputes while safeguarding the principles of fairness and justice. Other stakeholders have also criticized the tax reform bills, arguing that they could widen the economic divide between Northern and Southern Nigeria.

The Northern States, in particular, are concerned about the potential impact of the tax reform bills on their economies. They argue that the proposed VAT redistribution model could reduce allocations to Northern states by between ₦150 billion and ₦200 billion annually, jeopardizing funding for crucial sectors like education, healthcare, and infrastructure.

In light of these concerns, RMAFC has urged the federal government to reconsider the tax reform bills and engage in dialogue with state and local governments to secure consensus on a fair and equitable revenue allocation formula.

Southeast senators endorse Tinubu’s tax reform billsLegit.ng earlier reported that the 15 senators from Abia, Anambra, Enugu, Ebonyi, and Imo have announced their support for President Bola Tinubu’s tax reform bills.

Orji Kalu, the senator representing Abia North, announced the lawmakers’ decision on Monday, December 9, following their meeting in Abuja.

According to Kalu, the lawmakers are not opposing the bills but are calling for more consultations and engagement with all concerned parties.

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Source: Legit.ng