ACF submits tax reform recommendations to National Assembly

The Arewa Consultative Forum (ACF) has submitted its recommendations on the Executive Tax Reform Bills to the National Assembly, highlighting concerns and proposing adjustments aimed at ensuring fairness and efficiency in Nigeria’s tax system.

The forum said its submission followed a comprehensive review conducted by a special committee of experts set up by its Board of Trustees to examine the potential impact of the reforms.

The ACF emphasided that the proposed reforms would affect all regions of the country and not just the North.

In a statement by the National Publicity Secretary of ACF, Prof. Tukur Muhammad-Baba, he said copies of the report have been shared with the Forum of Northern state governors, traditional rulers, northern interest groups, relevant government agencies, and other stakeholders. Electronic copies were also made available to the public and the press.

Among the key recommendations, the ACF called for the retention of the current 7.5 percent Value Added Tax (VAT) rate, citing the economic hardships faced by citizens and businesses.

It also suggested improving VAT collection efficiency, formalising the informal sector, and using digital technology to expand the tax base while encouraging private sector investment.

The forum recommended that VAT on agricultural equipment be scrapped and suggested changing the terms “supply and supplies” in Chapter 6 of the Tax Administration Bill to “consumption or consumptions.”

The forum also urged “the clear definition of derivation with revenue distribution decided through consultations with states, local governments, and the Revenue Mobilisation and Fiscal Commission (RMFC).”

The ACF further proposed that all small towns and major cities should name their streets and number houses to make taxpayers more traceable.

It also recommended “setting annual upper limits on tax exemptions and waivers.”

The forum raised concerns over the concentration of power in the hands of the Chief Executive Officer and Chairman of the Board of Directors of the Joint Revenue Board.

Instead, it suggested appointing six Executive Directors representing federal character, nominated by the President and confirmed by the Senate, to replace the proposed eight Coordinating Directors.

The ACF also called for the retention of funding for TETFUND and NITDA through a restructuring of Section 69 of the proposed Nigeria Tax Bill, proposing a Development Levy to be shared with NASENI and the Education Loan Fund.

The forum recommended replacing the term “ecclesiastical” with “religious” throughout the bills and removing Section 4(3) of the Tax Bill, leaving such matters to Sharia and customary laws. It also proposed allowing tax returns and account records to be prepared in local languages, not just English.

Prof. Muhammad-Baba however, urged stakeholders to engage fully in the public hearings organised by the relevant National Assembly committees to ensure the emergence of robust laws that would serve the national interest.