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EXPLAINER: PROPOSED TAX REFORM BILLS NOT AGAINST THE NORTH; THEY WILL BENEFIT ALL STATES

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STATE HOUSE PRESS STATEMENT

EXPLAINER: PROPOSED TAX REFORM BILLS NOT AGAINST THE NORTH; THEY WILL BENEFIT ALL STATES

Governors of 19 Northern States of Nigeria, under the platform of the Northern Governors’ Forum, at their meeting on Monday, October 28, 2024, expressed their opposition to the new derivation-based model for Value-Added Tax (VAT) distribution in the new tax reform bills before the National Assembly.

Chairman of the forum, Governor Muhammed Inuwa Yahaya of Gombe State, read the communiqué.

The Northern Governors’ Forum meeting also had traditional rulers from the region, led by the Sultan of Sokoto, His Eminence Muhammadu Sa’ad Abubakar III, in attendance.

While we commend the Governors and traditional rulers for supporting President Bola Tinubu over the success recorded in addressing the country’s security challenges, we consider it necessary to address the misunderstandings and misgivings around the tax reform already embarked upon by the administration.

President Tinubu and the Federal Executive Council recently endorsed new policy initiatives aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency and eliminating redundancies across the nation’s tax operations.

These reforms emerged after an extensive review of existing tax laws. The National Assembly is considering four executive bills designed to transform and modernise Nigeria’s tax landscape.

First is the Nigeria Tax Bill, which aims to eliminate unintended multiple taxation and make Nigeria’s economy more competitive by simplifying tax obligations for businesses and individuals nationwide.

Second, the Nigeria Tax Administration Bill (NTAB) proposes new rules governing the administration of all taxes in the country. Its objective is to harmonise tax administrative processes across federal, state and local jurisdictions for ease of compliance for taxpayers in all parts of the country.

Third, the Nigeria Revenue Service (Establishment) Bill seeks to rename the Federal Inland Revenue Service (FIRS) as the Nigeria Revenue Service (NRS) to better reflect the mandate of the Service as the revenue agency for the entire federation, not just the Federal Government.

Fourth, the Joint Revenue Board Establishment Bill proposes the creation of a Joint Revenue Board to replace the Joint Tax Board, covering federal and all states’ tax authorities.

The fourth bill also suggests establishing the Office of Tax Ombudsman under the Joint Revenue Board, which would serve as a complaint resolution body for taxpayers.

It is instructive to note that these proposed laws will not increase the number of taxes currently in operation. Instead, they are designed to optimise and simplify existing tax frameworks.

The tax rates or percentages will remain the same under these reforms, as they focus on ensuring a more equitable distribution of tax obligations without adding to the burden on Nigerians.

The reforms will not lead to job losses. On the contrary, they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.

Importantly, these laws will not absorb or eliminate the duties of any existing department, agency, or ministry. Instead, they aim to harmonise revenue collection and administration across the federation to ensure efficiency and cooperation.

At the moment, tax administration lacks coordination among federal, state, and local tax authorities, often resulting in overlapping responsibilities, confusion, and inefficiency. Without reform, this inefficiency will persist.

The proposed laws aim to coordinate efforts between different tiers of government, resulting in better tax resource management and greater clarity for taxpayers.

Under existing laws, taxes like Company Income Tax (CIT), Personal Income Tax (PIT), Capital Gains Tax (CGT), Petroleum Profits Tax (PPT), Tertiary Education Tax (TET), Value-Added Tax (VAT), and other taxing provisions in numerous laws are administered separately, with individual legislative frameworks.

The proposed reforms seek to consolidate these multiple taxes, integrating CIT, PIT, CGT, VAT, PPT, and excise duties into a unified structure to reduce administrative fragmentation.

On the proposed derivation-based VAT distribution model, which the Northern Governors oppose, it must be stressed that the new proposal, as enunciated in the Bill, is designed to create a fairer system.

The current model for distributing VAT is based on where the tax is remitted rather than where goods and services are supplied or consumed. The ongoing tax reform seeks to correct the inherent inequity in the current derivation model as a basis for distributing VAT revenue.

The new proposal before the National Assembly outlines a different form of derivation which considers the place of supply or consumption for relevant goods and services. This means that states in the Northern region that produce the food we eat should not lose out just because their products are VAT-exempt or consumed in other states.

These reforms are critical to improving the lives of Nigerians and were not put forward by President Tinubu to undermine any part of the country. There is no better time than now for the National Assembly to give due consideration to these bills that will overhaul our tax systems and create the revenue all the tiers of government require to fund the development our country and people urgently need.

 

Bayo Onanuga

Special Adviser to the President

(Information & Strategy)

October 31, 2024

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Zelensky dampens hopes Trump could strike peace deal with Putin

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Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia
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Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia, even if pressured to do so by allies, dampening hopes that Donald Trump may be able to strike a peace deal.

‘No matter what anyone wants, even if all the allies in the world unite, we will never recognise the occupied territories [as part of Russia]. This is impossible,’ the Ukrainian president emphasised.

‘We will not legally recognise them. For us, they will always remain occupied territories until we liberate them.’

Trump, who took office for a second term on Monday and was last in power before Russia launched its full-scale invasion of Ukraine, has repeatedly said he could end the war swiftly, without specifying how.

His newly-appointed Secretary of State Marco Rubio said on Tuesday that ending the war was a priority for the president, but would only be possible if both sides make significant concessions.

‘Anytime you bring an end to a conflict between two sides, neither of whom can achieve their maximum goals, each side is going to have to give up something,’ he told CNN, adding that ultimately the decision would be down to the Ukrainians and Russians.

It comes after Russian Deputy Foreign Minister Sergei Ryabkov said today that Moscow sees a small window of opportunity to forge agreements with the new US administration.

‘We cannot say anything today about the degree of the incoming administration’s capacity to negotiate, but still, compared to the hopelessness in every aspect of the previous White House chief (Joe Biden), there is a window of opportunity today, albeit a small one,’ Ryabkov said, according to Interfax.

Volodymyr Zelensky has insisted that Ukraine will never recognise occupied Ukrainian territories as being part of Russia

 

Donald Trump, who took office for a second term on Monday, has said he could end the war swiftly, without specifying how

 

A Russian soldier fires a self-propelled gun

 

‘It’s therefore important to understand with what and whom we will have to deal, how best to build relations with Washington, how best to maximise opportunities and minimise risks,’ he said, speaking at the Institute for US and Canadian Studies, a think-tank in Moscow.

Trump warned on Tuesday that he would likely impose more sanctions on Russia if President Vladimir Putin refused to negotiate to end the nearly three-year-old conflict.

He gave no details on the possible additional sanctions on Russia, which is already under significant Western sanctions over the war.

The new president also issued a blow to the Kremlin on Tuesday, accusing Putin of ‘destroying Russia‘ with his failed war as he urged him to ‘make a deal’ to end the conflict.

‘He has to make a deal. I think he is destroying Russia by not making a deal,’ Trump said in a stark warning to the dictator.

‘I think Russia is going to be in big trouble,’ he added, saying that Putin ‘can’t be thrilled that he’s not doing so well.’

‘I mean, he works hard, but most people thought the war would be over in about a week, and now it’s been three years, right?’

The Russian economy was sinking, he went on, with inflation a major threat.

Putin, 72, earlier said he was ready to engage with Trump but still insisted on an outcome favouring Russia.

‘We are open to dialogue with the new US administration on the Ukrainian conflict. The most important thing here is to eliminate the root causes of the crisis,’ said the Russian ruler. An initial phone call is expected by Moscow to take place soon.

Trump said Zelensky was ready for a deal to halt the debilitating conflict, and the 78-year-old US leader said he planned to meet Putin with whom he had a ‘great relationship’ during his first term.

‘We’re going to try to do it as quickly as possible. You know, the war between Russia and Ukraine should never have started.’

Trump warned on Tuesday that he would likely impose more sanctions on Russia if President Vladimir Putin refused to negotiate to end the nearly three-year-old conflict

 

After months of Ukraine occupying parts of Russia’s Kursk region as it aims to improve its position in the event of talks, Zelensky stated that any dialogue could only go ahead with Kyiv in a position of strength.

Putin cannot be treated as legitimate in this situation. He has violated everything. He must understand his transgression,’ the Ukrainian president said today, adding that if Putin was ‘approached as an equal – that would be a loss for Ukraine.’

But, he said, his government’s top priority was to find a way to halt the war, which has claimed the lives of at least 43,000 Ukrainian soldiers, according to figures released by Ukraine in December.

‘We must find all possible ways to end the hot phase of the war. This is the number one issue,’ Zelensky said.

‘There can be many talks, but the main goal is to stop the active phase. This is the first guarantee of security.’

Russia has occupied Crimea since its 2014 invasion of the territory. Months later it took large parts of the Donbas region, launching a was under the guise of a separatist uprising.

Since the full-scale invasion in 2022, Russian forces have controlled large swathes of southern and eastern Ukraine.

Meanwhile, since a surprise attack in August, Kyiv’s forces occupy around 600 sq km of Russian territory.

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Trump orders ‘blackout’ at CDC, FDA, NIH as agencies prepare for MAGA

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The incoming Trump administration has ordered a pause on all external communications from the federal health agencies (Trump is pictured above at a news conference in the Roosevelt Room of the White House yesterday)
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Donald Trump has ordered a communications blackout at America’s federal health agencies, according to reports.

The CDC, FDA, HHS and NIH have all been told to pause external communications, including publishing scientific reports, updating websites or issuing health advisories.

The directive came without warning, sources told the Washington Post, and with little guidance as to how long it may last.

The health agencies play a vital role in gathering and sharing critical information with the public, including on outbreaks of infectious diseases, raising the alarm over foodborne disease outbreaks and food recalls.

However, DailyMail.com received its automated weekly FDA recall email at 8am ET this morning.

It is not entirely unusual for incoming administrations to pause external communications temporarily, which may be done to help newly appointed officials understand the scope of information that is being released.

But some said that if the pause lasts longer than a week or two then it could be seen as concerning.

The new president, 78, singled out public health agencies in his inaugural address — saying that they ‘do not deliver in times of disaster’, referring to what many have seen as a mishandling of Covid messaging.

Robert F. Kennedy Junior has been nominated to head up the HHS, which has oversight over all the federal health agencies.

As part of his ‘Make America Healthy Again’ pledge, he has promised to overhaul the three agencies.

The communications blackout was issued by Stefanie Spear, a deputy chief of staff at HHS who joined the agency this week. She was also RFK Jr.’s press secretary during his presidential campaign.

The pause on external communications includes blocks on publishing scientific reports issued by the CDC, known as Morbidity and Mortality Weekly Reports (MMWR), advisories sent out to clinicians on the CDC’s health network, data updates to the CDC website, and public health data released from the National Center for Health Statistics, including on drug overdose deaths.

The CDC had been scheduled to publish several MMWR reports this week, sources familiar with the matter said, including three on the bird flu outbreak alarming scientists.

It was not clear whether the directive also blocked the agencies from sharing urgent communications, such as on drug approvals or novel disease outbreaks.

Dr Lucky Tran, a Democrat-leaning science communicator at Columbia University, blasted the order as the beginning of censorship.

Jeff Jarvis, a retired professor of journalism at City University New York, said: ‘This is terrible: Forced ignorance on health data.

‘Officials in sane and scientific states must band together to report data on their own. We need such shadow governments.’

The CDC publishes on average about 50 peer-reviewed articles per week, in addition to updating numerous datasets and other materials, while the FDA initiates more than 500 food recalls per year.

The CDC receives about $24.9billion in public funding every year, while the FDA costs $8.4billion and the NIH costs more than $47billion annually.

At the beginning of Trump’s first term, administration officials also asked public health agencies to cease communicating with the public it was reported at the time.

At that time, the limits appeared focused on agenices overseeing environmental and scientific policy, such as the Environmental Protection Agency.

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Putin Hails Trump On Inauguration As US President For Second Time, Says Russia Willing To End War

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Russia President Vladimir Putin has congratulated Donald Trump as he is being inaugurated as the 47th President of the United States.

Putin on Monday, 20th of January 2025 revealed he was open to dialogue with the new U.S. administration on Ukraine and nuclear arms. He also indicated that Moscow was ready to discuss nuclear arms control and wider security issues.

In a video broadcast, Putin noted that he was interested in a long-lasting peace in Ukraine rather than a short-term ceasefire with the country.

He made the comments during the Russia’s Security Council meeting that was shown on state TV. According to him, “We see the statements by the newly elected president of the United States and members of his team about the desire to restore direct contacts with Russia,” said Putin.

“We also hear his statement about the need to do everything possible to prevent World War Three. We of course welcome this attitude and congratulate the elected president of the United States of America on taking office. “As for the resolution of the situation (in Ukraine) itself, I would like to emphasise that the goal should not be a brief ceasefire, not some kind of period of respite that would allow a regrouping and rearmament of forces, but a long-term peace based on respect for the legitimate interests of all people and all peoples who live in the region.”

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