CNG Calls for Comprehensive Consultation on Tax Reform Bills

• The Coalition of Northern Groups urges the Federal Government to evaluate proposed tax reforms thoroughly and consult with various stakeholders
• CNG rejects the VAT increase in the proposed tax reforms, emphasizing the need for alternative revenue sources to alleviate economic hardship

The Coalition of Northern Groups (CNG) has urged the Federal Government to subject the proposed tax reform bills to thorough evaluation and extensive consultation with sub-nationals, civil society organizations, and educational institutions before passing them into law.

During a press conference in Abuja, CNG National Coordinator Comrade Jamilu Aliyu Charanchi and other officials voiced the group’s concerns over the proposed reforms.

He emphasized that the government should halt the Value Added Tax (VAT) increase outlined in the bills and instead explore alternative revenue sources that would not exacerbate Nigerians’ current economic hardship.

“CNG categorically rejects these tax reforms in their current forms. They represent a shortsighted approach to revenue generation that sacrifices equity, inclusion, and sustainability,” Charanchi stated.

The group highlighted the socio-economic challenges Nigerians are already grappling with: poverty, unemployment, underfunded education, poor healthcare, and inadequate infrastructure. It criticized past and current administrations for failing to address these issues effectively.

After reviewing the proposed tax reforms, CNG warned that the changes would worsen existing challenges, with only three states and the Federal Capital Territory likely to benefit at the expense of the rest of the country.

The group also raised concerns about the potential adverse effects on critical institutions like TETFUND, NITDA, and NASENI, which play pivotal roles in national development.

To address these concerns, CNG recommended that the government:

1. Publish Comprehensive Data: Provide detailed data to justify the proposed VAT derivation formula. This would allow citizens to assess the fairness of the reforms based on clear and concrete numbers.
2. Ensure Transparency: Transparency is essential to bolster public trust. If data supports the reforms’ equity, it would enhance public confidence. However, maintaining the current VAT revenue-sharing formula would be more prudent if projections fail to demonstrate fairness.
3. Implement a Location-Based Collection System: This approach would enable the government to evaluate the real impact of the new collection method, especially on the existing 20% derivation share, while mitigating potential inequalities.