By Governor, Abdullahi Sule, has criticized the initial tax reform bills, stating they would have worsened economic hardship for Nigerians.
Speaking while hosting members of the Chartered Institute of Taxation of Nigeria (CITN) in Lafia, he argued that the proposed allocation of 60% of Value Added Tax (VAT) to Lagos State was unfair to other states. He cited examples of companies operating in Nasarawa but paying VAT in Lagos or Abuja, depriving local communities of revenue.
Sule emphasized that his opposition to the bill was not against President Bola Tinubu but rather a concern for ordinary Nigerians. “The President wants to bring solutions, but we had to tell him that this is not the right time, especially with inflation at 34%,” he said.
He further explained how VAT increases would disproportionately affect consumers rather than businesses. “As an MD, if VAT rises from 5% to 15%, I just adjust my prices. The real burden falls on the people,” he noted.
Governor Sule commended Tinubu for reconsidering the reforms, stating that the initial proposal lacked proper consultation. “It’s about speaking the truth. I’m not against anyone, but we should have engaged more stakeholders before drafting the bill,” he added.
He revealed that after governors raised concerns in a meeting with Tinubu, the President directed them to review and amend the tax proposals to make them fairer for all states.
