Tax reforms will reinvigorate Northern economy – Experts

A group of experts from Northern Nigeria has backed the Tax Reform Bills proposed by President Bola Tinubu, saying they will reinvigorate the northern economy.

The experts, who spoke as resource persons in a town hall meeting in Abuja organised by 200 civil society organisations, refuted  claims that the bills are anti-north and are rather geared towards the development of the region.

Dr. Mustapha Abubakar, a chartered accountant said the Tax Reform Bills are designed to expand Nigeria’s tax base, improve compliance and establish sustainable revenue streams.

“The bills are expected to have a positive impact on the northern economy, potentially increase government revenue, reduce poverty, and promote economic growth and development,” Abubakar said.

“One of the key benefits of the bills is the potential to increase revenue generation for state and local governments in the north. The proposed reduction of VAT distribution to the federal government from 15% to 10% and the increase in the share of state governments from 50% to 55% will result in more funds being available for development projects in the north.

“This is expected to lead to improved infrastructure, education, and healthcare in the region. Another significant benefit of the tax reform bills to the north is the potential to promote economic growth and development.

“The proposed reduction of company income tax from 30% to 25% over two stages will make it easier for businesses to operate in the north, leading to increased investment and job creation.”

Barrister Maxwell Batusan of the Kano state Internal revenue service another expert at the meeting, noted that the bills will promote synergy between the federal, state and local governments.

“The Joint Revenue Board Establishment Bill intends to establish the Joint Revenue Board, which will streamline tax administration and promote fairness and equity in the distribution of revenue,” Batusan said.

“Additionally, the exemption of small businesses with annual turnovers of N50 million or less from paying income tax will provide a boost to entrepreneurship and innovation in the region.

“Overall, the tax reform bills have the potential to unlock the economic potential of the north and promote sustainable development in the region.”

The event was chaired by Prof  Malfouz Adedimeji, Vice Chancellor African School of Economics ( Pan-African University of Excellence Abuja)

The town hall meeting was organised by the Coalition of Northern Civil Society Groups in collaboration with Concerned Northern Professionals.