The Bauchi State Chamber of Commerce, Industry, Mines and Agriculture (BACCIMA) has publicly denounced President Bola Tinubu’s proposed Tax Reform Bill, currently under consideration by the National Assembly. BACCIMA President Aminu Danmaliki affirmed the chamber’s alignment with Bauchi State Governor Bala Mohammed’s opposition to the bill, citing concerns that it disproportionately favors one region of the country at the expense of others, particularly the North. This stance echoes the sentiments of other northern governors, traditional rulers, and national leaders, including the National Economic Council of Nigeria. BACCIMA’s primary objection lies in the perceived inequitable distribution of tax revenues, especially concerning Value Added Tax (VAT), which they argue unfairly benefits producing states over consuming states.
Danmaliki highlighted the initial VAT proposal within the bill, which sought to allocate the majority of VAT revenue to producing states, leaving consumer states, who bear the actual tax burden, with a significantly smaller share. He emphasized that global best practices recognize VAT as a consumption tax, meaning the revenue should primarily benefit the regions where consumers reside and make purchases. The revised proposal, though adjusted after considerable pressure, still raises concerns about regional economic imbalances. BACCIMA contends that the current bill deviates from established international norms and principles of equitable taxation, potentially exacerbating economic disparities between different regions within Nigeria.
BACCIMA lauded Governor Mohammed’s appeal to President Tinubu for a reconsideration of the tax policy reforms, emphasizing his patriotism and commitment to ensuring equitable economic policies for all Nigerians. They underscored the potential for social and economic instability if the proposed reforms are implemented without careful consideration of their impact on various regions. The chamber believes that a balanced and equitable approach to tax reform is crucial for national unity and economic stability, cautioning against policies that could further widen the gap between different regions. They called for a more inclusive and transparent process of tax reform, ensuring that all stakeholders, particularly those in potentially disadvantaged regions, are adequately represented and their concerns are addressed.
The chamber’s critique of the Tax Reform Bill extends beyond VAT to encompass broader concerns about the overall framework and its potential to exacerbate regional inequalities. They argue that the bill, in its current form, fails to address the fundamental economic disparities that exist between different regions of Nigeria and could further disadvantage already struggling areas. BACCIMA’s call for a more balanced approach emphasizes the importance of considering the unique economic circumstances of each region when formulating national tax policies. They advocate for a system that promotes economic growth and development across all regions, rather than concentrating resources in specific areas.
BACCIMA’s stance reflects a deeper concern about the potential for the proposed tax reforms to exacerbate existing regional tensions and inequalities. They argue that a fair and equitable tax system is essential for maintaining national unity and fostering economic development across the country. The chamber’s call for a reconsideration of the bill is not simply a matter of economic policy, but also a plea for national cohesion and stability. They emphasize that policies that disproportionately benefit one region at the expense of others could lead to social unrest and undermine the country’s overall economic progress.
The chamber’s opposition to the Tax Reform Bill represents a significant challenge to the government’s fiscal policy agenda. Their arguments highlight the complexities of implementing tax reforms in a diverse and economically uneven country like Nigeria. BACCIMA’s call for a more balanced and equitable approach underscores the need for a comprehensive dialogue between the government, businesses, and civil society to ensure that tax policies promote both national unity and economic prosperity for all regions. The chamber’s stance serves as a reminder that tax reform is not merely a technical exercise but a deeply political process that must carefully consider the social and economic implications for all stakeholders. They urge the government to engage in meaningful consultations with all affected parties to develop a tax system that is both efficient and equitable, ensuring that the benefits of economic growth are shared by all Nigerians, regardless of their region.
