The Bauchi State Chamber of Commerce, Industry, Mines and Agriculture, has said it rejected the Tax Reform Bill before the national assembly.
This was contained in a press release issued to journalists on Thursday by the President of the Chamber, Aminu Danmaliki.
The BACCIMA said it was in support of the pronouncement made by the Bauchi State Governor, Bala Mohammed on the bill which was consistent with the position taken collectively by the governors and the traditional rulers of the North as well as some national leaders in the country, including the National Economic Council of Nigeria.
Danmaliki stressed, “We, therefore, agree with Bala Mohammed’s statement that the Tax Reform Bill, which is before the National Assembly, is skewed to favour one section of the country.
“Other leaders in the country should stand up against the bill, which is designed to harm the North.”
The statement believes that, “If not because of the pressure so far mounted, the Federal Government would not have fine-tuned its submission on the Value Added Tax, VAT, that earlier proposed a position that the revenue that accrued from VAT to the Federal Government should be shared with the city where the products are produced and should take the lion share leaving the consumers that pay the VAT tax with little.
“Based on global practice, VAT is typically a consumption tax, ultimately paid by consumers.”
The chamber insisted that it makes more sense for the revenue to go primarily to where consumers live and spend money.
It noted that Governor Bala Mohammed was only patriotic by urging President Tinubu to backtrack on the tax policy reforms, which could lead to anarchy.
Similarly, the Coalition of Northern Groups, Students-Wing, said it has rejected “in totality” the proposed tax reform bill, saying it is designed by the enemies of the state to undermine the educational sector.
The National Coordinator of the CNG students’ wing, Hassan Adamu, made the decision known during a press briefing on Monday held at the Bauchi College of Agriculture.
Adamu who insisted that the tax reform bill is designed to undermine the existing educational institutions and equally ensure that anything good in the sector becomes a history, emphasised that Nigerian students will vehemently resist it at all cost.
According to him, “The reform will have a deteriorating effect on critical institutions that have supported the educational development in the country.
“We see the Tax Reform Bill as a deliberate attempt to attack our critical national institutions that are responsible for basic infrastructure in tertiary institutions, thereby ensuring that the institutions become a mortuary.”
While stating that the Tertiary Education Trust Fund contributions and support which has over the years played a pivotal role in financing research, physical infrastructure, staff training and development will collapse over time, he added that “TETFUND is currently funded will not have any allocation by 2025 which by implication will lead TETFund to extinction, a situation which is tantamount to degrading the Tertiary Education system in Nigeria.
“It is imperative to state that the Bill will favour NELFUND with its long-term negative consequences, which will increase access to student loans, which will trap our youth in bondage and possibly turn the institutions into revenue-generating agencies.
NELFUND is currently funded by a 1% deduction collected from Taxes, levies, and duties collected by the Federal Inland Revenue Service; it will now receive 25 per cent of the levy in 2025 and 2026, 33per cent from 2027 to 2029 and 100 per cent by 2030 according to the new Tax Reform Bill.”
The CNG students’ wing coordinator maintained that “The implication of this is that the proposed bill, if passed, will divert funds critical sectors such as infrastructure and innovation initiatives with long-time development impact.
“It shifts attention to student loans; this could also give a reason for the public tertiary institutions to increase their tuition fees.
“It could also make our public tertiary institutions one revenue-generating entity, paving the way for privatisation of our tertiary institutions, thereby making them inaccessible to the masses.
“This will also saddle our youth with the unsustainable debt burden, mirroring the country’s chronicle national indebtedness, and as well risk creating a generation of financially constrained youth that are incapable of contributing meaningfully to our economy.”
Thus, Adamu called on the federal government to discontinue the reform process in the interest of Nigerian students and give room for a holistic consultation and amendment before legislation.
He equally demanded that “all patriotic legislators and all well-meaning Nigerians study the Bill with a keen interest and ensure justice to our educational institutions and Nigerian students.”
Credit: THE PUNCH
