Most critics of tax reform bills have zero knowledge about VAT – Nasarawa governor

Governor Abdullahi Sule of Nasarawa State has raised concerns over the debate surrounding the proposed tax reform bills before the National Assembly, asserting that many critics lack a clear understanding of Value Added Tax (VAT) and its workings.

Speaking during an interview with Arise Television on Monday, Sule acknowledged the initial opposition expressed by some northern governors, including himself, to certain aspects of the bills.

However, he noted that recent clarifications from President Bola Tinubu and Taiwo Oyedele, the chairman of the Presidential Advisory Committee on Fiscal Policy and Tax Reform, have addressed many of their concerns.

“The unfortunate part of this debate is that it has been taken over by people with zero knowledge about VAT or the bills themselves,” Sule said. “Some are doing it to save their jobs, others for political gain, and some for reasons unrelated to the real issues at hand. This has made the discourse unproductive and uninteresting.”

The governor highlighted that one of the contentious issues was the perception that VAT revenue would be allocated solely at the point of generation. This misunderstanding, he explained, had fueled opposition to the bills.

“During the meeting in Kaduna, we were initially told that 60% of VAT revenue would be allocated solely at the point of generation. But Mr. Oyedele later clarified that the 60% would be shared between the point of generation and the point of consumption. This adjustment addresses one of our key concerns,” he noted.

Sule emphasised that this clarification has eased tensions among stakeholders, particularly in the northern region, where concerns had been raised about the potential imbalance in VAT distribution.

Sule, who chairs the North Central Governors Forum, stated that withdrawing the bills might no longer be necessary. He argued that amendments could resolve the contentious issues without disrupting the legislative process.

The governor praised President Tinubu for his willingness to engage with stakeholders and address their concerns. He revealed that Tinubu had reassured governors during a recent meeting that their feedback would be considered in the final version of the bills.

“In our last meeting with Mr. President, he confirmed his willingness to look into the bills and address areas of concern. Similarly, Taiwo Oyedele and Zach Adedeji, who are key figures behind these reforms, have shown a readiness to engage in constructive dialogue,” Sule said.