Former Senator Shehu Sani has urged Nigerians to support the proposed tax reform bill, describing it as a necessary step to address the inequitable distribution of Value Added Tax (VAT) revenue among states.
In a post shared on X (formerly Twitter), Sani referenced a revelation by the Federal Inland Revenue Service (FIRS) Chairman during a session with the House of Representatives. According to the Chairman, 70% of VAT revenue is generated by just four entities—Lagos, Rivers, Oyo, and the Federal Capital Territory (FCT). Sani called this situation “unjust” and highlighted the need for reform to ensure fairness in resource allocation.
He criticized the current system, citing the example of telecommunications giant MTN, which pays most of its VAT in Lagos despite its services being consumed across all states. Sani argued that the bill would provide a more equitable system for all states to benefit from national resources.
Addressing opposition to the bill, he encouraged critics to set aside political biases and review the document thoroughly. “All the sentiments raised against the bill are not contained in it,” he said, emphasizing that the proposed changes would eliminate existing tax injustices.
Sani’s call aligns with ongoing debates on how to ensure equitable fiscal policies that support the economic growth of every state in the federation.
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