The 19 state governors in the Northern region have aired their strong displeasure on the recent Tax Reform Bill the Federal Government submitted to the National Assembly for approval.
The governors particularly rejected the proposed shift to a Derivation-based Model for Value Added Tax distribution.
They claim that the proposed model would be at the disadvantage of the northern states and other less industrial regions.
The governors, under the auspices of the Northern States Governors’ Forum, voiced their strong opposition in a communique issued after a strategic meeting in Kaduna.
The communique was read by the Chairman of the NSGF and Governor of Gombe State, Muhammad Yahaya.
The meeting included northern traditional rulers, the Chief of Defence Staff, General Christopher Musa, and other key stakeholders.
The latest development comes amid multiple debates surrounding resource control and the distribution of Value Added Tax revenue among states. Many northern states where Sharia law is practiced prohibit the sale of alcoholic beverages but still receive a share of VAT collected from alcohol sales.
Peoplesmind
