The Northern States Governors’ Forum (NSGF) has voiced its strong objection to the Federal Government's recent Tax Reform Bill, particularly its proposed shift to a derivation-based model for Value Added Tax (VAT) distribution. The governors argue that the new model would disadvantage the North and other less industrialized regions.
The communique, presented by NSGF Chairman and Gombe State Governor Muhammad Yahaya, was issued following a high-level meeting in Kaduna attended by northern traditional rulers, Chief of Defence Staff General Christopher Musa, and other stakeholders. The governors stressed that VAT is currently collected based on the location of company headquarters rather than where goods and services are consumed, a system the proposed model would disrupt.
"The forum notes with dismay the content of the recent Tax Reform Bill ... the contents of the reforms are against the interest of the North," the communique read, urging the National Assembly to oppose the amendments. The NSGF called for equity in policy implementation, asserting that all geopolitical zones deserve fair treatment.
