Governor Abdullahi Sule of Nasarawa State has raised concerns about the ongoing debate over the proposed tax reform bills in the National Assembly, pointing out that many critics lack a clear understanding of Value Added Tax (VAT) and how it works.
In an interview with Arise Television on Monday, Governor Sule admitted that there were initial concerns from some northern governors, including himself, about certain aspects of the tax bills.
However, he said that clarifications from President Bola Tinubu and Taiwo Oyedele, the Chairman of the Presidential Advisory Committee on Fiscal Policy and Tax Reform, had helped ease many of these concerns.
“The sad part of this debate is that it’s been dominated by people who don’t really understand VAT or the bills,” Sule explained. “Some are just trying to protect their own interests, while others have political reasons for opposing it. This has made the discussion less constructive.”
One of the major points of confusion, according to the governor, was the belief that VAT would only be collected at the point where revenue is generated. This misunderstanding caused a lot of opposition.
However, after discussions with Oyedele’s committee, it was clarified that VAT revenue would be shared between both the points of generation and consumption.
“We were originally told that 60% of VAT revenue would go to the point of generation,” Sule said.
“But Mr. Oyedele later explained that this 60% would actually be shared between the point of generation and consumption, which addressed a big concern of ours.”
As the Chairman of the North Central Governors Forum, Sule said that calls to withdraw the bills might no longer be necessary.
With reassurances from President Tinubu and Oyedele, he believes the bills can be amended to reflect the concerns of stakeholders.
“We wanted the controversial parts of the bills to be discussed and addressed, and that’s already happening,” he noted. “We don’t need the bills to be withdrawn as long as they can be amended to incorporate our suggestions. This way, we can keep moving forward without stalling the process.”
Governor Sule also praised President Tinubu for being open to addressing the concerns of governors. He mentioned that during a recent meeting, the president assured them that their concerns would be taken seriously and reviewed.
“At our last meeting with Mr. President, he made it clear that he was willing to address the issues that had been raised,” Sule said. “Taiwo Oyedele and Zach Adedeji, who are key to these reforms, have also shown they are ready to engage in a productive dialogue.”
The tax reform bills have stirred significant debate, especially among northern governors and lawmakers, who are concerned about how the changes might impact their already struggling regions.
Northern states face significant economic challenges, high levels of poverty, and ongoing security issues, leading many to fear the bills could add to their burdens.
Under pressure from northern lawmakers and 73 northern governors, the House of Representatives has decided to suspend further discussions on the bills for now.
While the debate continues, there seems to be room for compromise. With ongoing discussions and the promise of amendments, there is hope that the final version of the tax reform will address the needs of all regions without exacerbating existing problems.
