NEC Urges President Tinubu To Withdraw Tax Reform Bills, Cites Importance Of Stakeholder Input

The National Economic Council (NEC) on Thursday recommended President Bola Tinubu to withdraw the current tax reform bills in the National Assembly.

During its monthly meeting at the State House in Abuja, the council said it believes this will allow for more thorough discussions and agreement among important stakeholders.

The recommendation came after a presentation by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee. It emphasized the need for wider consultations with stakeholders to ensure everyone understands the significant effects of the proposed tax reforms.

After the meeting, Governor Seyi Makinde of Oyo State told the media that the council members agreed it was important to create consensus and ensure that Nigerians understand the tax reform bill before moving forward.

"NEC today took a presentation from the chairman of the presidential committee on fiscal policy and tax reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending," he said, as per the official statement shared on X.

"So, after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms."

The council recommended withdrawing the current tax reform bill from the National Assembly to also allow for broader discussions and to build agreement on the reforms that will benefit the entire country.

This approach will help clarify the vision for tax reform and address the misunderstandings and misinformation surrounding it. After the bill was withdrawn, consultations will take place.

Tinubu and the Federal Executive Council recently supported new policy initiatives aimed at improving Nigeria's tax administration processes. They stated that these new laws were intended to increase efficiency and reduce unnecessary steps in the country's tax operations.

The tax reforms were developed after reviewing the current tax laws since August 2023. The National Assembly was looking at four executive bills that include these tax reform efforts.

The recommendation from the National Economic Council followed objections from the Northern Governors. During a meeting on Oct. 28, the governors of the 19 Northern states, representing the Northern Governors' Forum, rejected the new derivation-based model for distributing Value Added Tax in the proposed tax reform bills.