By Ibrahim Hassan-Wuyo

The Amalgamation of Islamic groups under the aegis of Islamic Forum for Unity of the Ummah would meet on Wednesday to discuss the Tax Reform Bill introduced by the government of President Bola Tinubu.

The Islamic Forum said such a sensitive government policy, like the proposed tax reform, needs wider consultations with stakeholders, groups and citizens before being passed into law.

in a statement jointly signed by the Chairman, Mallam Adam Awwal Muhammad and Secretary, Sheikh Akanbi Rashidi Bolaji, the Islamic Forum for Unity of the Ummah expressed concerns over the rejection of the bills by Northern governors and National Economic Council recommendation for withdrawal.

“At the Meeting convened by Sheikh Mustapha Al-Arabi convener, members of Islamic groups are expected to discuss the content of the bills with regards to interest and economic implications as well as benefits to Muslim communities across the country and take a stand.

The decision to meet over the tax reform bills stemmed from the concerns raised in some quarters over the new derivation-based model for VAT distribution and the contents of the bills, which the northern governors claimed did not align with the interests of the North and other subnational entities.

The Forum stated that the bills have not been presented for a second reading where the principles of the bills will be debated, adding “We don’t want to be Hoodwinked into accepting a tax reform the will affect our people and their economic wellbeing,thus our decision to meet and get informed knowledge about the reforms before taking a stand.

“We have read the recommendations of the Presidential Committee on Fiscal and Tax Reforms headed by Taiwo Oyedele, for the review of existing tax laws.

“From the document read ,we observed that the bills are the Nigeria Tax Bills are expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.

” We noticed it proposes several key changes, that include a gradual increase in Value Added Tax (VAT) from 7.5% to 15% by 2030 and an adjustment in Company Income Tax, which would set a rate of 27.5% for large companies, reducing to 25% by 2026.Additionally, the bill proposes a 4% development levy on companies to fund the Student Education Loan Fund, along with a 5% excise duty on sectors such as lottery, gaming, and telecommunications.

” We hope that the issues of transparency, particularly through provisions requiring price transparency and monitoring of publication costs are upheld” .