Stakeholders in Northern Nigeria have called for the reduction of Value Added Tax (VAT) to 3% and the relocation of corporate headquarters of banks and telecommunications companies to Abuja to address perceived inequities in the proposed tax reform bills.
The demands were made at a town hall meeting organized by the Coalition of Northern Groups (CNG), civil society organizations (CSOs), and other stakeholders at Arewa House, Kaduna on Thursday.
The stakeholders criticized the current VAT distribution formula, which allocates revenue based on the location of a company’s headquarters rather than where goods and services are consumed.
They argued that such a system disproportionately benefits certain regions, leaving others at a disadvantage.
“Abuja, being the Federal Capital, should serve as a neutral ground for the corporate headquarters of these companies to ensure fair revenue distribution,” a resolution from the meeting stated.
On VAT, the stakeholders demanded that the federal government reduce the rate to 3%, rather than increase it as proposed.
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They said this would provide relief to struggling businesses and citizens already grappling with the effects of subsidy removal and inflation.
The meeting also called for increased funding for agencies such as TETFUND, NITDA, and NASENI to sustain innovation and education, while urging the federal government to reconsider the tax reform bills entirely.
Signed resolutions from the event were however submitted to Northern lawmakers, urging them to reject the reforms in their current form.