• Kano, Zamfara, others to get higher revenue
• Senate leader gives more insight into Bills
The proposed Value Added Tax (VAT) model will guarantee more income for states in the North and a reduction for Lagos and Rivers, according to data on the plan.
Adjustment in the sharing formula of the VAT is part of the four Tax Reform Bills before the National Assembly.
Some lawmakers, such as Senator Ali Ndume, are opposed to the Bills, especially the aspect of VAT, with the claim that it puts states in the North at a disadvantage.
But making available details from some of the data accompanying the Bill, Senate Leader Opeyemi Bamidele said in a statement yesterday: “As credible data have shown, for instance, the new model recommends 6.17 per cent to Kano compared to 0.89 per cent currently due to it.
“It recommends 1.21 per cent for Zamfara compared to 0.05 per cent.
“Currently, Lagos gets 80.26 per cent, but the new model only recommends 15.28 per cent, representing an 81 per cent decrease.
“Under the new model, also, Rivers’ share will decline from 7.74 per cent to 4.6 per cent, accounting for a 41 per cent loss.
“With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.”
Giving more insight into the content of the Bills, Bamidele said: “Amid the debates about the Tax Reform Bills, as Christ, our Lord has taught us and as the parliament of the people, we shall never pursue any agenda outside our oath of allegiance or undertake policy initiatives adversarial to or conflicting the interest and welfare of all our constituents and indeed our Fatherland.
“We have taken due note of public concerns about these initiatives. We are, as well, looking deeply into the areas of public concern.
“Our duty, as democrats, is not just to listen to our constituents, but also give effect to policy initiatives that will positively impact their lives.
“For the record, the Tax Reform Bills, when finally enacted, utterly exempt all employees earning N1,000,000 annually or N83,000 monthly.
“The Bills exempt start-ups, shared services and technologically driven services from taxation and recommend zero VAT on essential services and consumptions.
“Even though it reviews the derivation formula to 60 per cent, this proposal is guided purely by the principles of equity, fairness and justice.”
Felicitating Nigerians on Christmas, Bamidele added: “As we celebrate His faithfulness and goodness in our homes, we must also remember the needy in our neighbourhoods and consciously minister to them as Christ would have done.
“We need to reflect on the travail of the vulnerable nationwide and rekindle enduring hope in their hearts.
“We must reach out to those in troubled areas and show them the care of Christ our Lord.
“In this season and beyond, we must likewise remember Nigeria, our Fatherland and the only country of our common heritage.
“With the zeal of our Lord, we must offer our timeless prayers for the renaissance of our Fatherland, for the restoration of her economy, for the stability of her polity, for the cohesion of her people across the Niger and the manifestation of her glory in the league of nations.
“This is the season never to shy away from eternal responsibilities God Almighty has committed to our hands.
“This is the season to renew our resolve to faithfully stand with the political leadership for the renewal of hope.
“This is the season to halt the search for pastures that are never green, but the time to join hands together to build our nation with conviction and rebrand her for the ceaseless inflow of global capitals and the endless troupe of global tourists.
“This is the spirit behind key legislations and reforms we have promoted in the 10th National Assembly.
“From the Tax Reform Bills 2024 to the National Minimum Wage Act, 2024, Investment and Securities Act, 2024 and National Ranches Commission Establishment Bill 2024, among others, we are simply committed to building an environment where businesses can operate seamlessly; where investors will never think twice before they bring in their capital; where our compatriots can freely breathe without undue burden and where the next generations will be proud of at all times.
“We are pursuing each of these reforms purely in the love of our countrymen as Christ our Lord has commanded.”
Faleke: bills will harmonise taxes
The Chairman of the House of Representatives Committee on Finance, Dr. James Abiodun Faleke, said some provisions of the Tax Reform Bills were misunderstood.
He spoke in Lagos while educating members of his Ikeja Federal Constituency on the benefits of the bills.
According to him, all states will get benefits.
He said: “There is no justification for the misgivings about the Tax Reform Bills, especially VAT.
“The proposal will harmonise the various taxes.
“Besides, more than 90 per cent of what affects the ordinary Nigerians has been exempted from taxation.
“VAT is what I call the rich man’s tax.
“Items such as food, education, public transportation, and medicals that affect the common man have been exempted from VAT, which is consumption tax for as long that such products are not taken to hotels and big restaurants to sell.
“Many of those saying that VAT will impoverish one region do so out of ignorance.
“It is to redistribute revenue so that no state has undue advantage on the others.”
Archbishop faults over-reliance on oil
Also yesterday, the Archbishop of the Anglican communion of Kaduna province, Timothy Yahaya, gave his support to the Tax Reform Bills.
He said states should be more concerned about boosting production rather than what is shared from the centre.
He told reporters: “The bills will stimulate the economy, but the sharing of money is not the best for this country.
“Go to America, some states are known for oranges, some for apples. So, what is each state in Nigeria known for?
“Some states should be known for the production of cocoa, rubber, plantain, ginger or rice, which we can export.
“Leaders must think outside the box and think of creating wealth, instead of thinking of sharing what we extracted from the ground.”
The cleric urged Nigerians to remain steadfast amid economic challenges.
“My message to Nigerians on Christmas day is like the Angel that came on the day of Christmas and said, ‘fear not, for today is born unto you a child and there is great joy in the whole world’.
“So I tell Nigerians, fear not. The God that has been with Nigeria since creation is still the God that is there today.
“With all that we are going through, it will come to pass, it will be over, and I believe that after this storm, there will be a better and greater Nigeria.
“So I don’t want Nigerians to lose heart, I want them to be encouraged,” Yahaya said.
