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Governor Zulum sounds Alarm: Tax reform bill will Cripple state Finances

The federal government should take the governor’s concerns seriously and engage in a more inclusive and transparent process to develop and implement tax policies that are fair, equitable, and effective.

Published

9 months ago

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Governor Zulum of Borno State
Today am eager to express my deep concern about the statement made by Governor Babagana Zulum of Borno State, warning that the state government will not be able to pay salaries if the tax reform bills currently before the National Assembly scale through.
The governor’s statement, which was made during a public hearing on the tax reform bills, is a clear indication of the potential consequences of the proposed tax reforms on the finances of state governments.
According to Governor Zulum, the tax reform bills, which aim to increase the Value Added Tax (VAT) from 7.5% to 10%, will lead to a significant reduction in the revenue of state governments.
The governor argued that the proposed tax reforms will not only affect the revenue of state governments but also have a negative impact on the economy of the country.
He pointed out that the proposed increase in VAT will lead to an increase in the cost of goods and services, which will have a negative impact on the purchasing power of Nigerians.
Furthermore, Governor Zulum argued that the proposed tax reforms will not address the issue of tax evasion and avoidance, which is a major challenge facing the country’s tax system.
He suggested that instead of increasing VAT, the federal government should focus on expanding the tax base and improving tax administration.
The governor’s statement is a wake-up call to the federal government to reconsider the proposed tax reforms and their potential impact on the finances of state governments.
It is also a reminder that tax reforms should be carefully designed and implemented to avoid unintended consequences.
The governor’s statement highlights the need for a more transparent and inclusive process in the development and implementation of tax policies.
The federal government should engage with state governments, the private sector, and civil society organizations to ensure that tax reforms are fair, equitable, and effective.
Moreover, the governor’s statement emphasizes the need for a more effective and efficient tax administration system.
The federal government should invest in modernizing the tax administration system, including the use of technology, to improve tax compliance and reduce tax evasion and avoidance.
Governor Zulum’s statement is a timely warning about the potential consequences of the proposed tax reforms on the finances of state governments.
The federal government should take the governor’s concerns seriously and engage in a more inclusive and transparent process to develop and implement tax policies that are fair, equitable, and effective.
Muhammad Konto 
Mass Communication department, Borno State University, Maiduguri.
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