According to Zamfara State Governor Dauda Lawal, if President Bola Tinubu approves and signs into law the tax reform bills before the National Assembly, some states with lower incomes will not be able to survive.
On Tuesday, the governor stated on Channels Television’s Politics Today programme that “it is something that must be carefully studied so that we don’t hurt ourselves in the long run,” as some states might not be able to survive.
There are two halves to the tax problem: the positive and the negative. Therefore, we are researching the scenario to guide our people in the future. “We will continue the engagement, and it’s an ongoing process,” he stated.
Under the auspices of the National Economic Council (NEC), the 36 state governors have been among those who have fiercely opposed and criticised the new tax bills that the Tinubu administration has tabled. Additionally, the proposals’ provisions have been categorically rejected by the 19 governors of northern Nigeria.
One northern governor, Lawal, stated that if the tax reforms are put into effect, several states may find it impossible to pay the N70,000 minimum salary.
“A system will inevitably undergo reform, so we should always anticipate it, the governor stated. When attempting to do so, we must be cautious not to act hastily and risk doing something that would harm us later.
“Therefore, I think we should thoroughly consider the circumstances, come to a consensus, and have a clear understanding. There is a section that discusses derivation, and if we follow it, it will undoubtedly have an impact on the types of inflows that certain states receive and, more often than not, make it more difficult for those states to pay their salaries,” the governor said.
