The ACF has submitted recommendations to the National Assembly regarding the tax reform bill. Key proposals include allowing Sharia law to govern inheritance, maintaining the current VAT, exempting agricultural equipment from VAT, and redefining terms for clarity. The group also calls for structural changes in the Joint Revenue Board and emphasizes the need for documentation in local languages.
The Arewa Consultative Forum (ACF) has proposed significant modifications to the National Assembly regarding the tax reform bill, particularly emphasizing the need for Sharia and customary laws to oversee inheritance matters. They recommend that Section 4(3) of the tax reform bill be removed to facilitate this shift in jurisdiction. Furthermore, the ACF urges that the current Value Added Tax (VAT) rate of 7.5% be maintained, citing economic hardships faced by citizens and businesses in Nigeria.
The ACF advocates for the exemption of VAT on agricultural equipment and suggests changes to specific legal language in the Tax Administration Bill. They propose redefining the term “derivation” to ensure clarity in its distribution, based on consultations with state and local governments, as well as guidance from the Revenue Mobilisation and Fiscal Commission (RMFC). Additionally, they recommend that all towns and major cities implement proper street naming and house numbering to aid in taxpayer identification.
Concerns about excessive powers granted to the Joint Revenue Board’s Chief Executive Officer have been voiced by ACF, stating that this consolidation of authority is inappropriate. They propose appointing six Executive Directors to represent federal interests instead of the suggested eight Coordinating Directors. These Executive Directors should be nominated by the President and confirmed by the Senate.
The forum also advocates for continuous support of TETFUND and NITDA by restructuring Section 69 of the Nigeria Tax Bill to categorize it as a Development Levy, which would also benefit other educational funds. The ACF insists on replacing the term “ecclesiastical” with “religious” across various provisions of the Bills and emphasizes the importance of local language records for tax accounts and returns.
In summary, the ACF calls for critical amendments to the tax reform bill regarding inheritance laws, tax rates, and administrative structures. They emphasize the importance of clear definitions, equitable distribution methods, and the necessity for local engagement in tax documentation. Their proposals reflect a commitment to ensuring that the tax system is fair, accessible, and reflective of local customs and legal frameworks.
Original Source: www.zawya.com
