…Urges FG to replace VAT with Sales Tax

The Arewa Economic Forum (AEF) has called for the citing of a refinery at the Kolmani Oil Field in Bauchi State.

Ibrahim Shehu Dandakata, the Chairman of the AEF, while addressing a press conference in Abuja, this afternoon, said that the project was critical for the survival of Northerners and businesses in the region, especially against the backdrop of current exorbitant fuel prices in the country.

He argued that hauling fuel from the South to the North, with its attendant escalating prices was unsustainable and that since some Korean investors had shown willingness to build refineries in Nigeria, one of them should be in Kolmani to substantially meet the fuel needs of the North.

His words, “We believe that addressing our energy security and ensuring the availability and affordability of energy will be instrumental in driving economic growth.

“As we previously expressed during our discussions with the Federal Government regarding the Kolmani oil field in Bauchi, we reiterate our call for the government to site one of the four proposed 100,000 barrels per day refineries by Korean investors in Kolmani.

“This initiative would significantly reduce the costs of refining and transportation, while effectively meeting a substantial part of the northern market’s needs.

The Kolmani Integrated Development Project is expected to attract Foreign Direct Investment (FDI) of about $3 billion and designed to house a 120,000-barrels per day refinery, a 500-million standard cubic feet per day gas processing plant, a 300-megawatt capacity power plant, and a fertiliser plant of 2,500 tons per day.

Replace VAT with Sales Tax

The Forum aligned with the Northern Governors’ Forum in its opposition to the Value Added Tax Bill currently before the National Assembly.

AEF suggested that in the alternative, the federal government should concentrate on Sales Tax and that it would generate more revenue from Sales Tax than VAT, if effectively administered.

The Chairman said, “While we commend the Federal Government for its tax collection reforms, we believe that as the government strives to widen the tax net and alleviate the tax burden on citizens, it is crucial to reconsider the current Value Added Tax (VAT) system.

“We suggest replacing VAT, which is a multi-layered tax structure, with a simpler sales tax that serves as a genuine consumption tax paid at the point of sale. “This change would bring more companies, enterprises, and services under the government’s tax net, thereby enhancing collection efficiency and enabling a fairer distribution of revenue based on derivation.

Banditry: Integrate community leaders in security architecture

The Forum urged the government to urgently address banditry, terrorism and other organised crimes leading to vandalism of infrastructure and desertion of farm land and several communities in the region.

The Chairman said, “Counter insurgency are critical to the stability of our region and the nation at large, especially concerning harvesting and exploring the potential of our agriculture, commerce, and mining resources.

“We implore government agencies at all levels to expedite efforts in this regard, so that our lives can become safer and more affordable, especially in light of the direct link between food inflation and insecurity.

“There is no way you can win this kind of insurgency without the full cooperation of the local people. Local leaders should cooperate with security actors of those places that are affected by these issues.

“We all agree that the coming in of civil agencies in government has played a very important and vital role in curbing Boko Haram.

“And up till now they are playing a very important role in curbing the effects of Boko Haram. We’ve made a consistent call on government at all levels to ensure that this kind of synergy is created at all levels.”