Northern Experts Support Tinubu’s Tax Reform Bills, Affirming Benefits for The Region

A group of experts has voiced strong support for President Bola Tinubu’s Tax Reform Bills, asserting that they have the potential to reinvigorate the northern Nigerian economy. The discussion occurred during a town hall meeting organized by 200 civil society organizations in Abuja. Contrary to claims that the bills might adversely affect the region, these experts argued that the reforms would foster development and economic growth.

Key Insights from Experts

• Expanded Revenue and Economic Growth:
  Dr. Mustapha Abubakar, a chartered accountant, highlighted that the bills aim to broaden Nigeria’s tax base and enhance compliance. He noted the potential for increased government revenue at the state and local levels in the north due to a proposed adjustment in VAT distribution—from 15% to 10% for the federal government and an increase to 55% for state governments. This redistribution is expected to fund developmental projects, including improved infrastructure, education, and healthcare.
• Corporate Tax Reduction to Boost Business:
  Abubakar also emphasized the benefits of a staged reduction in corporate income tax from 30% to 25%, which would create a favorable environment for business operations, drive investment, and generate employment opportunities in the region.
• Support for Small Businesses:
  Barrister Maxwell Batusan, representing Kano State’s Internal Revenue Service, pointed out that exempting small businesses with annual turnovers below ₦50 million from income tax would encourage entrepreneurship and innovation.
• Enhanced Collaboration Through the Joint Revenue Board:
  Batusan also stressed the significance of the Joint Revenue Board Establishment Bill, which aims to harmonize tax administration and promote equity in revenue sharing among federal, state, and local governments.

Event Organization and Leadership

The town hall was chaired by Prof. Malfouz Adedimeji, Vice Chancellor of the African School of Economics, Abuja. The event was collaboratively organized by the Coalition of Northern Civil Society Groups and Concerned Northern Professionals.

This strategic dialogue underscores the potential of the Tax Reform Bills to unlock economic opportunities, address poverty, and promote sustainable development across Northern Nigeria, according to experts at the event.