Former Senator Shehu Sani has thrown his full support behind the proposed tax reform bill currently under review by the House of Representatives. The bill, introduced by Zaccheus Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), aims to address disparities in Value Added Tax (VAT) distribution across Nigeria’s states.
Speaking during a session on November 20, 2024, Adedeji highlighted that only four states—Lagos, Rivers, Oyo, and the Federal Capital Territory (FCT)—reap significant benefits from VAT generated by major corporations like MTN. He stressed the need for a uniform tax structure, noting that while these corporations enjoy business patronage nationwide, most states receive minimal returns.
Senator Sani praised the reform, emphasizing its potential to promote fairness and equity across the country.
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“This tax reform is a step in the right direction. It will ensure that all states, not just a select few, benefit from the economic activities of major corporations. This is about justice and fairness in resource allocation,” he stated.
He urged lawmakers to rally behind the bill, emphasizing its importance in addressing regional imbalances and fostering inclusive development.
The proposed tax reform seeks to create a more equitable distribution of VAT revenues, ensuring that every state benefits proportionally from the economic contributions of corporations operating across the nation. Supporters argue that this will encourage balanced development and reduce dependency on federal allocations.
Economic analysts have also praised the initiative, describing it as a bold move toward achieving tax uniformity and fairness in Nigeria’s fiscal policies.
