CNG KOGI STATE CHAPTER CALLS ON LAW MAKERS FOR THE IMMEDIATE SUSPENSION OF THE PROPOSED TAX REFORM BILLS.

 

  Earlier today, the Coalition of Northern Groups CNG Kogi State Kogi stated under the leadership of Comr . Habib Salau Enesi delivered a press conference on the knockout of the ongoing Tax reform bills by the Federal Government.

   These are the press release: “The continuing discussion surrounding the tax reform bills put forth by President Bola Ahmed Tinubu's administration has been closely watched and tracked by the CNG Kogi State Chapter.

Like other Nigerians, the CNG Kogi State Chapter is well aware of the socioeconomic issues that Kogi State face, such as unemployment, poverty, inadequate funding for education, poor health, and deteriorating infrastructure. Inflation, various taxes, corruption, and official impunity are among issues that hinder our progress and that we believe previous administrations have failed to address.”

“OBSERVATION:

The Tax Reform Bills represents structural shift that could deepen economic inequalities. between Northern and Southern Nigeria, while Lagos consolidate s it's financial dominance, Northern Nigeria would risk losing vital resources critical for it's development. The tax reform raises significant concerns about the economic implications for Northern Nigeria while amplifying advantage for states like Lagos..

Northern States that have relied heavily on equitable VAT redistribution risk losing up to 30 to 40 percent of their current allocation and thus severely affecting States like Kogi State.”

“IMPACT IN KOGI STATE:

-Unjust VAT Derivation: The derivation principle focuses on rewarding where VAT is effectively paid not where goods are produced.

Example; Kogi State is known for high deposits of mineral resources, such as Iron ore, Kaolin, Coal, Feldspar, lime stone and host of others, those products are processed into finished product in industries outside the State, this skew the benefits of the state with proposed Tax Reform Bills.”

“- IMPACT ON STATE OWN INSTITUTIONS;

Most of the tertiary institution own by Kogi State are basically dependent on Tertiary Education Trust Fund (TETFUND) for Infrastructure and staff development. Evidences shows on the rapid development of Kogi State Polytechnic, the recently created institution by the immediate past governor of the state ( Confluence University of Technology Osara and Kogi State University Kabba) respectively has shown heavy input of TETFUND project that aided the quick and swift infrastructural development in those various institution.

Under the new structure, TETEFUND will receive 50 percent of the development levy in 2025 and 2026 and rising to 60 percent from 2027 to 2029 as the levy rate decline to 3 percent. However TETEFUND will receive no funding from 2030 onward effectively phasing it out. This which as well has effect other programs such NITDA and NASENI...”

“RECOMMENDATIONS:

One of the developmental objectives of nations is to have balanced development and when the proceed of tax receipt will benefit certain region in high proportion will negate the idea of balanced national development.

- VAT is a direct tax on consumer, it's not for luxury goods only therefore,the government should put to halt the VAT increase and explore alternative source such as considering the dreading of the River Niger at the confluence for Sea port activities to surface in Kogi State .

- Government at all level should focused on industries that can improve the economy of our state and the country at large by securing and preventing illegal mining operation in our local communities where mineral resources are deposit as recently cited by the Concerned Youth of Eika Adagu in Okehi Local Government Area of Kogi State, where unknown bodies are illegally mining the mineral deposits in Itakpe Iron Ore Company Camp 1. Companies like DANGOTE that annexed at Obajana in Kogi State should be reconsider having it's Head office in the State since it's dependant crude is 90 percent deposit in Kogi State.

The Okaba district of Ankpa Local Government has 99 millions tones of coal, Kogi State alone has enough coal to supply Nigeria for 400 years.

Kogi State has enough lime stone to keep three cement factories operational for 99 years.

Kogi State mineral resources can be used to make a variety of products including machinery, aloys,oxide, tool,rails and so on.

CNG Kogi State POSITION

Based on the afore mentioned analysis the CNG Kogi State Chapter categorically reject in totality the this Tax Reform in this current form.

-The CNG Kogi State Chapter is rumorsly aware that the governor of the state His Excellency Alh. Ahmed Usman Ododo and the law makers are in support of the proposed Tax Reform Bills, we hereby call on His Excellency to join hand with us on the courageous fight against this tax reform policy.

- We are using this medium to call on the executive Governor of Kogi State His Excellency Alh Ahmed Usman Ododo to immediately dispatch security apparatus to put to halt the illegal mining operation in Itakpe Camp 1 of the Itakpe Iron Mining Ore.

We call on the president of the Federal Republic of Nigeria, President Bola Ahmad Tinubu invest heavily on the Ajaokuta integrated steel complex and steadily develop it with the vision of erecting a Metallurgical Process Plant cum Engineering Complex with other auxiliaries and facilities. The complex if invested on is meant to be used to generate important upstream and downstream industrial and economic activities that are critical to the diversification of our economy into an industrial one. Ajaokuta Steel Plant is therefore aptly be seen as the Bedrock of Nigeria's industrialization. The project if embarked upon will serve as a strategic industry, a job creator and a foreign exchange saver and earner. It would provide materials for infrastructural development, technology acquisition, human capacity building, income distribution, regional development and employment generation. While the project would directly employ about 10,000 staff at the first phase of commissioning, the upstream and downstream industries that will evolve all over the nation will engage not less than 500,000 employees.

      Finally, the CNG Kogi State urgently demand the immediate suspension of these Tax Reform Bills so as to allow wider engagement and collective inputs of critical stakeholders and Nigerian citizens towards implementing a more equitable, transparent and sustainable Tax administration reform in our dear country.”

Thanks for your attention!!!

God bless Kogi State

God bless Northern Nigeria God bless Federal Republic of Nigeria

Signed:

Salau Enesi Habib

Kogi State Coordinator