- Governor Bala Mohammed urges President Tinubu to reconsider tax reform bills, emphasizing the need for national unity and fairness
- The proposed VAT distribution model faces criticism from northern leaders, who argue it disadvantages less industrialized regions
Bauchi State Governor, Bala Mohammed, has urged President Bola Ahmed Tinubu to reconsider the proposed tax reform bills, calling for a review focused on national unity and fairness.
On BBC Hausa Service, Governor Mohammed recommended halting the bill’s progress to allow for comprehensive consultations that ensure balanced reform.
The proposed shift to a derivative-based model for distributing value-added tax (VAT) has drawn sharp criticism from northern leaders, who argue it would disadvantage less industrialized regions, particularly in the north. Despite these concerns, President Tinubu has not withdrawn the bills.
Governor Mohammed warned that the proposed tax changes would intensify economic hardship for many northern states already facing financial strain. “Any reform as it stands will further impoverish the north,” he stated, emphasizing the need for a tax system that avoids harming any region.
He highlighted Bauchi State’s financial struggles, explaining that monthly federal allocations fall short of covering essential expenses, such as a N4 billion salary bill.
With many northern states unable to benefit from oil revenue, the current VAT structure, which favours states where companies are headquartered, exacerbates regional inequality. Northern states, though major consumers in industries like telecommunications, see much of the tax revenue benefiting southern states.
“We are one country, operating a federal system. No region should be disadvantaged,” Governor Mohammed stressed, voicing frustration with the federal government’s stance.
The governor warned that northern leaders might be forced to mobilize their lawmakers to oppose the bill if the concerns raised continue to be ignored. He also called on President Tinubu to respect the people’s voices and engage in a national dialogue on tax reform.