Governor Sule: Northern Governors Now Support Tax Reform After VAT Adjustments

Nasarawa State Governor, Abdullahi Sule, has announced that state governors are in full support of the Federal Government’s Tax Reform Bills. The confirmation came after the House of Representatives passed four crucial tax reform bills on March 18, reflecting amendments proposed by the governors.

Governor Sule, who spoke at the Veritas media event in Abuja, revealed that initially, some northern governors opposed the bills, particularly the proposed gradual increase of the Value Added Tax (VAT) from 7.5% to 15% over five years. The governors raised concerns about the economic impact, especially on northern states.

However, following consultations with President Bola Ahmed Tinubu, the governors were allowed to present their concerns. Governor Sule commended the President for his openness to dialogue and flexibility in modifying the VAT increase plan.

The governors’ initial opposition led to a request for the withdrawal of the bills, but President Tinubu insisted on maintaining his position, suggesting that the governors should raise their concerns at the public hearing. After further discussions, the revised bills passed by the House incorporated the requested adjustments, earning the governors’ backing.

Governor Sule expressed optimism that the revised VAT formula would have a positive impact, especially in northern regions, and praised the President for balancing economic growth with the needs of the states.