Prominent Islamic scholar Sheikh Ahmad Gumi has voiced his support for President Bola Tinubu’s tax reform bills, describing them as a step toward improving Nigeria’s economic landscape.
His endorsement comes amidst opposition from some northern governors, lawmakers, and traditional leaders who argue the reforms could exacerbate poverty in the region.
Grassroots Parrot reports that critics from the North have raised concerns about the potential impact of the reforms, particularly regarding the proposed changes to Value Added Tax (VAT) allocation.
Despite this, President Tinubu defended the four bills, asserting they aim to simplify tax administration, alleviate burdens on low-income earners, and curb double taxation and excessive levies.
Sheikh Gumi’s approval of the reforms marks a notable shift in the ongoing debate. After reportedly reviewing the draft bills, Gumi commended the overall objectives, emphasizing their potential to create a more equitable tax system.
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“I believe the contentious VAT issue is the only part that needs to be reviewed; otherwise, it is a good package for all,” Gumi stated.
His remarks highlight a key point of contention in the reforms, which some northern leaders argue might favour wealthier states like Lagos and Rivers at the expense of poorer regions.
President Tinubu has reiterated that the reforms are essential to reducing Nigeria’s dependency on oil revenue, fostering a fairer tax system, and supporting local economic activities.
He assured Nigerians that the bills were crafted to promote inclusivity and balance in the nation’s fiscal policies.
“These reforms will not only simplify tax collection but also provide relief for low-income earners and small businesses,” Tinubu explained, urging critics to engage constructively rather than opposing the measures outright.
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Gumi’s endorsement has prompted calls for a more informed and collaborative approach to the reforms. The cleric’s thorough examination of the bills stands in contrast to admissions by some northern politicians that they had not fully reviewed the proposals before opposing them.
As the debate continues, the government faces the challenge of addressing concerns raised by critics while pushing forward with policies aimed at achieving fiscal sustainability and reducing inequality.
Sheikh Gumi’s support may provide momentum for the administration to rally broader acceptance of the reforms.