Senate Leader, Opeyemi Bamidele, has said that the tax reform bills of President Bola Tinubu will favour states like Kano and Zamfara, as there will be an increase in their Value-Added Tax (VAT) allocation.
Bamidele stated this in his Christmas message to Nigerians, adding that those opposing the tax reforms currently before the National Assembly were spreading false narratives, contrary to the provisions of the bills.
“The provisions recommend 6.17 per cent to Kano compared to the current 0.89 per cent the state is receiving, and Zamfara will get 1.21 per cent of the total VAT allocation instead of the 0.05 per cent it currently receives,” he said.
The senator representing Ekiti Central Senatorial District also debunked the claim made by Governor Babagana Zulum of Borno State that, except Lagos, other states of the federation would not benefit from the tax reform bills.
Zulum, in a recent interview with the BBC Hausa Service, lamented that the bills could have devastating consequences for the northern region of Nigeria, especially by preventing states from paying their workers’ salaries.
Bamidele, however, countered Governor Zulum, explaining that Lagos, which currently receives 80.26 per cent of the total VAT, will have its share reduced to 15.28 per cent, and Rivers State, which currently receives 7.74 per cent, will drop to 4.6 per cent if the bills are passed.
“As credible data have shown, for instance, the new model recommends 6.17 per cent to Kano compared to 0.89 per cent currently due to it. It recommends 1.21 per cent for Zamfara compared to 0.05 per cent,” he said.
“Currently, Lagos gets 80.26 per cent, but the new model only recommends 15.28 per cent, representing an 81 per cent decrease.
“Under the new model, Rivers’ share will decline from 7.74 per cent to 4.6 per cent, accounting for a 41 per cent decrease. With these figures, the narrative around the new derivation model is utterly incorrect and unfounded.”
Bamidele, in his Christmas message, explained that the National Assembly has taken note of all the concerns raised regarding the bills.
“We have taken due note of public concerns about these initiatives. We are also looking deeply into the areas of public concern,” he said.
“Our duty, as democrats, is not just to listen to our constituents but also to give effect to policy initiatives that will positively impact their lives.”
He also pointed out that, contrary to the opinions of some critics, the tax reform bills have recommended that those earning N83,000 monthly or N1,000,000 per annum should be exempted from paying VAT on consumption and essential services.
