The Ulama Forum in Nigeria has voiced strong opposition to Nigeria Tax Bill 2024 and Nigeria Tax Administration Bill 2024, currently before the National Assembly.
The Forum expressed concerns over the bills’ potential to deepen income inequality, disrupt fiscal federalism, and jeopardize critical developmental agencies.
In a statement released by the Convener, Malam Aminu Muhammad, a copy of which was made available to Daily Telescope on Tuesday, the Forum criticized President Bola Tinubu’s refusal to heed the National Economic Council’s recommendation to withdraw the bills for revision.
They described the proposed legislation as unjust, lopsided, and detrimental to Nigeria’s federal structure.
According to the Forum, the NTAB’s provisions would shift the largest share of Value Added Tax revenue from areas of consumption or generation to the headquarters of production entities. They argued that VAT is a consumption tax, and its revenue distribution should reflect consumption patterns rather than the location of production head offices.
“Transferring VAT revenue to production headquarters violates the principles of equity and fiscal equalization. This will disproportionately favour a few states, while economically strangulating others, including the Federal Capital Territory,” the statement said.
The Forum also raised concerns about the proposed Development Levy distribution formula, which they warned would undermine critical agencies like TETFUND, NITDA, and NASENI. These agencies, essential for educational infrastructure, research, and innovation, face being phased out by 2030 if their funding is reduced as proposed in the bills.
“It is alarming that public tertiary institutions could be forced to charge exorbitant tuition fees to cover infrastructure and research funding gaps. This would burden students with debt under the Student Loan Scheme and may pave the way for the full privatization of tertiary education,” the statement added.
The Forum described the bills as untimely and insensitive, particularly as Nigerians grapple with harsh economic realities. They also highlighted concerns about inadequate public consultation, suggesting a deliberate rush to pass the bills without sufficient debate.
The group further accused the bills of aligning with a World Bank reform agenda, which they claim undermines Nigeria’s sovereign independence. “These bills seem tailored to meet the World Bank’s 10 to 15-year reform agenda, prioritizing foreign interests over national welfare,” the Group said.
The Forum, therefore, recommended broader public consultation and engagement with stakeholders, including state governors and experts, to thoroughly assess the implications of the proposed reforms.
They urged members of the National Assembly to resist any pressure to pass the bills in their current form, emphasizing the need to protect the interests of their constituencies.
Additionally, the Forum called on public-spirited individuals, groups, and organizations to challenge the bills’ perceived threats to federal constitutionalism and economic fairness.
While the Forum acknowledged the need to harmonize Nigeria’s tax laws, they insisted that the current bills fall short of fairness and inclusivity. “In the spirit of justice and fair play, the bills should be withdrawn to allow for wider discourse and a national consensus,” the statement concluded.
