By Stephen Gbadamosi, Ibadan
Pan-Yoruba socio-cultural and socio-political organization, Afenifere, has congratulated all those who worked to remove the stalemate that characterized the efforts at passing the four tax bills proposed by the Federal Government (FG) into law.
In a statement issued by the organization’s National Publicity Secretary, Comrade Jare Ajayi, Afenifere applauded the FG for initiating the tax reform bills “because of the inherent benefits.”
Of the bills, President Bola Tinubu had stated that: “These tax reforms are designed with a pro-poor focus to advance national interests, improve our economic competitiveness, and attract both local and foreign investments.”
But there appeared to be a stalemate due to the reservations expressed by Northern states’ governors and traditional rulers, especially the section that deals with sharing of Value Added Tax (VAT) proceeds which they said was skewed against their region.
However, a crucial meeting held in Abuja last Thursday ended the impasse as the reservations of the parties were harmonized into the main documents to cater for a compromise interest of groups.
Afenifere’s statement appreciated concerns expressed by various interest groups, particularly the Northern governors.
“The way the matter was resolved has a lot for us to learn from. First is for our leaders to be visionary in taking initiatives that are people-oriented as demonstrated by President Tinubu on the tax bills.
“Second is the need by the society to express their feelings on issues of public concern.
“Third is the need by the leaders to be sensitive to concerns raised by members of the public.
“Fourth is the need to subject issues to consultations with open minds and submit to a superior idea that would be in the best interest of the majority as demonstrated by the parties involved in the tax bills controversy.
“All the above played out in the resolution of the tax bill brouhaha. It is in this respect that we commend President Tinubu for allowing for further consultations when issues were raised about the bills.
“The outcome demonstrated the benefits inherent in consultations and enhanced the President’s democratic credentials,” Afenifere stated.
Recall that the Nigeria Governors’ Forum (NGF), at its meeting held at Transcorp Hilton Hotel, Abuja, on Thursday, January 16, said the governors supported the continuation of the ongoing legislative process in the National Assembly that would lead to the passage of the bills.
Governors in the Northern part of the country, along with some other leaders in the region, had earlier threatened to prevail on their representatives in the National Assembly not to support the passage of the bills. But with this new position, the coast is clear for the passage.
Afenifere said it was important to mention that the governors did not align themselves with the bills without making an input.
“The area of contention in one of the bills had been on how proceeds from the proposed Value Added Tax bill are to be distributed among the tiers of government. The Federal Government had proposed the sharing formula to be 20 per cent on the basis of equality of states, while the governors proposed 50 per cent.
“For derivation, the Federal Government proposed 60 per cent, while the governors proposed 30 per cent. Population, according to the Federal Government, is to be 20 per cent. The governors concurred on this, according to the communique read to newsmen by the NGF Chairman, Governor Abdulrahaman Abdulrasaq of Kwara State.
“Two other areas where the FG and governors seemed to disagree, and later agreed, were on the terminal dates for some government institutions like TETFUND, NASENI and NITDA as well as the plan by the FG to increase VAT from the present 7.5 per cent.
“Governor Abdullahi Sule of Nassarawa, who also spoke at the governors’ Transcorp meeting, put the matter succinctly by saying ‘the agreement today has given equilibrium, as all governors, the Northern elites and the presidency, are on the same page.’
“Going by the reaction from the Presidency to the views expressed by the governors on the issue, it can be safely said that the suggestions by the latter are acceptable to the former.
“Thus, the bills stand the chance of easy passage at the National Assembly, meaning that the whole thing has turned out to be a win-win situation for all concerned,” Afenifere enthused.
