By Uzair Adam
The Ulama Forum in Nigeria has expressed strong opposition to the proposed Nigeria Tax Bill (NTB) 2024 and Nigeria Tax Administration Bill (NTAB) 2024, currently before the National Assembly.
In a joint statement signed by its Convener, Aminu Inuwa Muhammad, and Secretary, Engr. Basheer Adamu Aliyu, on Monday, the forum raised concerns about the bill’s implications on equity, federalism, and economic fairness.
The statement criticized the bills for transferring the largest share of Value Added Tax (VAT) revenue from consumption or generation areas to states hosting production entities’ headquarters.
“VAT is a consumption tax. Transferring its revenue from the areas where it is generated to the locations of head offices undermines fiscal equalization, widens income disparity, and risks social disharmony,” the forum said.
The forum also noted that the bills threaten the survival of critical agencies such as TETFUND, NITDA, and NASENI by proposing a gradual reduction in their funding through the Development Levy.
“Phasing out these agencies will jeopardize infrastructure, research, and capacity-building efforts in our tertiary institutions, leaving students to bear exorbitant tuition fees under an ill-conceived student loan scheme,” the statement warned.
The forum accused the government of rushing the bills without sufficient public scrutiny, alleging that they align with a long-term reform agenda by international financial institutions such as the World Bank and IMF.
“There is room to suspect that these bills are part of the World Bank’s 10 to 15-year reform agenda, threatening our sovereign independence,” the forum alleged.
To address these issues, the Ulama Forum urged the National Economic Council and State Governors to intervene and demand a thorough review.
“The concerns of state governors and other stakeholders must be addressed to give these bills credibility and avoid perceptions of external imposition,” it added.
The forum recommended that the bills be subjected to extensive public debate and expert analysis to ensure they align with Nigeria’s federal structure and national interest.
It called on members of the National Assembly to act in the best interests of their constituencies and resist any pressure to pass the bills in their current form.
“We urge public-spirited individuals and organizations to rise against this threat to fair and even development. The VAT-sharing formula and the proposed bills strike at the heart of federal constitutionalism,” the forum concluded.
The Ulama Forum emphasized the need for justice and fairness, calling for the bill’s withdrawal to allow for broader discourse and a national consensus.