The Arewa Consultative Forum (ACF) has presented a detailed report to the National Assembly, outlining its observations and recommendations on the proposed Executive Tax Reforms Bills aimed at restructuring Nigeria’s tax system.
The report, prepared by a team of experts appointed by the ACF Board of Trustees, follows an extensive review of the proposed legislation.
In a statement on Monday, February 24, ACF’s National Publicity Secretary, Prof. Tukur A. Muhammad-Baba, noted that the tax reforms would have nationwide consequences, not just for Northern Nigeria.
To ensure widespread consultation, the report has been shared with the Northern State Governors’ Forum, traditional rulers, relevant government agencies, interest groups, and the public through electronic copies.
The ACF strongly opposes any increase in Value Added Tax (VAT), citing economic hardship on citizens and businesses.
Instead, it recommends improving VAT collection efficiency, formalising informal businesses, and broadening the tax base by encouraging private sector investments.
Additionally, it calls for VAT exemptions on agricultural equipment.
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The forum suggests replacing the terms “supply and supplies” in Chapter 6, Part 1, Sections 143–147, with “consumption or consumptions” for better clarity.
The ACF insists that the term ‘derivation’ must be clearly defined, with revenue distribution agreed upon by states and local governments under the guidance of the Revenue Mobilisation and Fiscal Commission (RMFC).
It recommends street naming and house numbering in all towns and cities to enhance tax compliance.
The report calls for annual limits on tax incentives to prevent excessive revenue losses.
The ACF wants the proposed absolute authority for the CEO and Chairman to be significantly reduced for greater accountability.
Instead of the proposed eight Coordinating Directors, the ACF suggests six Executive Directors, nominated by the President and confirmed by the Senate, ensuring federal character.
The forum recommends modifying Section 69 of the Nigeria Tax Bill to introduce a Development Levy, which would be allocated to TETFUND, NITDA, NASENI, and the Education Loan Fund.
The ACF proposes replacing “ecclesiastical” with “religious” in the Bills and removing Section 4(3), allowing tax matters for religious institutions to be handled under Sharia and customary laws.
It also advocates for tax records to be maintained in local languages, not just English.
Encouraging public engagement, the ACF urged Nigerians to participate in the National Assembly hearings on the tax reforms.
“For posterity and national duty, we encourage all stakeholders to engage in discussions that will shape tax laws to serve Nigeria’s interests. Let us ensure that the tax laws we create today stand the test of time.”