By; Mohammed Kawu, Bauchi
The Coalition of Northern Groups CNG has kicked against the purported 13% of the nation’s taxes to be paid for consultancy services in the name of reform, describing it as totally unacceptable
The coalition at a press conference in Bauchi Friday noted with dismay that the nation’s deductable 13 percent derivable taxes for consultancy services appears to prioritize personal gains of select few who aggrandizingly planned to feed fat on the country’s commonwealth over the collective good of the citizenry.
It further rejected the proposed centralization of tax collection which would stop Nigeria Customs Service from collecting excise duties and import VAT as well as make the new Nigeria Revenue Service (NRS) the sole collector of Royalties from the upstream oil sector.
“The coalition strongly warns against any attempt at increase given the prevailing harsh economic conditions that make life miserable for Nigerians. This is a time that the federal government should encourage and support Small and Medium Enterprises (SMEs) rather than suffocating them with unnecessary taxes and exploitation”.
According to the CNG, with the soaring food inflation now at about alarming 40% which has made millions of people food insecure, it not only rejected any scintilla of thought that proposes an increase in VAT, but also proposed a reduction from 7.5% to 3.%.
Comrade Jamilu Aliyu Charanchi stated that the CNG also completely rejected taxing Family Wealth or Inheritance as it unjustly burdens the families, negate religious tradition and contradicts cultural values.
The coalition said however that the ball is now in the Court of the National Assembly with all eyes on its members to be brave and stand firm to protect interests of the downtrodden masses, just as governors have courageously fought their battle which led to a new, fair and acceptable VAT formula.
Coalition also reminded Senators and House of Representatives Members, particularly those from the North that are supporting the bills without recourse to amending the identified loopholes and anomalies or, being indifferent, are commiting crime against their constituents, and CNG would mobilize people to confront them at the appropriate time.
CNG National Coordinator, Comrade Jamilu Aliyu Charanchi therefore called on the legislators to ensure that all controversial aspects of the bills that are detrimental to Nigerians are thoroughly and carefully examined and expunged before considering any further action.
That the CNG unequivocally vows to continue to mobilize against the de-funding of TETFUND, NASENI, and NITDA as these critical institutions play pivotal roles in advancing education, innovation, and technological development in Nigeria.
The CNG commended the Nigerian Governors’ Forum (NGF) for their doggedness in championing a more equitable VAT sharing formula, saying the revised formula of 50% based on equality, 30% on derivation, and 20% on population is a welcome departure from the earlier, lopsided proposal of 20% on equality, 20% on population, and 60% on derivation.
Charanchi explained that the Nigerian governors have collectively, done extremely well in reversing the imposed formula to a more acceptable win-win VAT formula, observing however that while people celebrate the revised VAT formula, there are other controversial issues in the bills that must be tackled with all seriousness.
The CNG said it remained deeply concerned about such controversial aspects that pose severe implications for ordinary Nigerians, stressing that the adjustment will foster unity and fairness, ensuring no region is left behind in Nigeria’s development trajectory.
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