The Coalition of Northern Groups (CNG), a youth organisation, has called for a more equitable tax system in Nigeria, urging policymakers to implement reforms that will ensure fairness across all regions.
The group’s Kano State Coordinator, Mr. Sani Yusuf, made the call during a news conference on Friday in Kano.
Yusuf expressed concern that the proposed reforms, if implemented in their current form, would have severe and disproportionate consequences for Kano State, its institutions, and its people.
“Our position is based on key observations that directly impact Kano’s economic, educational, and technological sectors. Immediate attention must be given to these issues,” Yusuf said.
According to him, contentious aspect of the tax reforms is the introduction of a 60 percent derivation formula for VAT revenue allocation.
“In the absence of transparent data justifying this shift, it is unclear how states like Kano, where consumption is high, will be affected by the new system,” Yusuf said.
He further expressed concern about the lack of publicly available data detailing how these changes will impact each state, particularly Kano.
The coalition also urged the government to release this data and provide justification for the fairness of the new formula, especially if it is claimed that non-Lagos states, including Kano, would benefit.
He said that the troubling element of the reforms was the proposed incremental increase in VAT rates, potentially reaching 15 percent by 2030.
“In a country already grappling with high poverty levels and widespread economic hardship, any increase in VAT will only worsen the challenges faced by ordinary Nigerians.
“The coalition strongly opposes these proposed VAT hikes and we called on the government to explore alternative revenue sources that do not further burden the people of Kano and the rest of the country,” the coordinator said.