GOVERNOR Dauda Lawal of Zamfara State says some financially less-buoyant states may not survive if the tax reform bills before the National Assembly are passed and signed into law by President Bola Tinubu.
“Some states may not be able to survive so it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” the governor said on Channels Television’s Politics Today programme on Tuesday monitored by News Point Nigeria.
“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect. So, we are studying the situation so as also to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement,” he said.
The new tax bills introduced by the Tinubu administration have been enveloped in widespread controversy and sparked scathing criticisms and stiff opposition from many including the 36 state governors under the aegis of the National Economic Council (NEC). The 19 governors in northern Nigeria have also unequivocally rejected sections of the bills.
Lawal, one of the governors in the north, said it would be difficult for many states to pay the N70,000 minimum wage if the tax reforms are implemented.
The governor said, “Reform in a system is inevitable and we should always expect reforms. However, in trying to do that, we also need to be careful not to be in a hurry to do something that will later hurt us.
“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.
“There is a component of it that talks about derivation and definitely, if we are to go by it, it is going to affect some of the states in terms of what kind of inflows they have and invariably it may make it difficult for some states to be able to pay their salaries.”
Recall, Governor Babagana Umara Zulum of Borno State has criticised the tax reform bills, saying it will drag the northern part of the country backward.
Weighing on the development in an interview with BBC Hausa service last month, the governor expressed displeasure over how the bills enjoyed speedy and smooth passage to the current phase when other bills had to spend several years to scale through.
“We condemn these bills transmitted to the National Assembly. They will drag the north backward, and not only the north, South East, South West and some states in the South West such as Oyo, Osun, Ekiti, Ondo, will have problem with these bills.
“It is not opposition. This, based on our understanding, is something that will destroy the north in its entirety. Therefore, we call on President Bola Ahmed Tinubu and others to review this decision. He secured 60% of his votes in the north. He should not listen to those telling him that northerners are not supporting him. If our interest is served, that is all. What we need now is the withdrawal of the tax bills”, Zulum had said.
