By Abiola Olawale
Following the huge controversies that emerged over the proposed tax reform bills before the National Assembly, the Senate has announced that some of its members would meet with a Federal government delegation on Thursday.
The Deputy Senate President, Senator Barau Jibrin, made this announcement on Wednesday during plenary.
According to Barau, the meeting is scheduled to be held at the National Assembly Complex. The Deputy Senate President also added that the Senate minority leader, Abba Moro would lead the senators to the meeting tomorrow.
Other Senators who will attend the meeting as announced by the Deputy Senate President are the Chief Whip, Mohammed Tahir Monguno, Adamu Ailero (PDP, Kebbi Central), Seriake Dickson (PDP – Bayelsa West), Titus Zam (Benue South), Abdullahi Yahaya (Kebbi), Solomon Adeola (APC, Ogun West), Sani Musa (APC – Niger East) and Adetokunbo Abiru (APC – Lagos East).
The New Diplomat reports that the tax reform bills proposed by the administration of President Bola Ahmed Tinubu have ignited widespread controversy across various sectors of the economy.
The new tax bills under consideration in the National Assembly propose adopting a derivation principle in the allocation of VAT revenues between the federal government and sub-national entities.
These proposals have sparked controversy, with northern elites openly rejecting them, arguing that the changes may not favour the North as a region.
Under the current Section 40 of the VAT Act, VAT revenue is allocated as follows: 15% to the Federal Government, 50% to the States and Federal Capital Territory (FCT), and 35% to Local Governments. The allocation to states and local governments incorporates a derivation principle of at least 20%.
Although not explicitly detailed in the VAT Act, other factors influencing the distribution include 50% based on equality and 30% based on population.
