The Coalition of Northern Groups (CNG) has called for consultations on the proposed tax reforms to address the concerns of the northern region on the bills.
During a town hall meeting in Gombe State, the group expressed fears that the changes in the tax laws could worsen hardship in northern states.
Gombe State coordinator of CNG, Mustapha Deba, who presided over the session said the proposed reforms could have far-reaching adverse effects on the region, including a disproportionate impact on northern states and increased economic disparities.
“The proposed reform’s emphasis on derivation appears to favour states with higher VAT-generating activities, predominantly in the South, such as Lagos.
“This shift could significantly reduce the revenue shares allocated to Northern states, where economic activities are comparatively lower,” Deba noted.
He urged the Nigerian Senate to pause considering the bill and engage in further consultations with stakeholders with a view to coming up with a tax system that fosters national unity and economic prosperity, “rather than one that deepens existing divides or marginalises any segment of society.”
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