News on: 10 facts to know about Tinubu new Tax Reform Bills as northern leaders raise fresh concerns

President Bola Tinubu's Tax Reform Bills have sparked intense debate in Nigeria, with northern leaders expressing concerns about the proposed changes. Here are 10 key facts to know about the reform bills:

- Tax Exemption Threshold: Individuals earning less than ₦800,000 annually will be exempt from income tax.

- VAT Revenue-Sharing Formula: The proposed formula allocates 60% of VAT revenue to the state where goods and services were consumed, 20% based on population, and 20% equally shared among all states.

- Northern Leaders' Concerns: Northern leaders fear the new VAT formula will favor southern states and exacerbate regional economic disparities.

- Small Business Tax Relief: Small businesses with annual revenues under ₦25 million will be exempt from profit taxes.

- Corporate Income Tax Reduction: Larger companies will see a phased reduction in Corporate Income Tax (CIT) from 30% to 25% by 2026.

- VAT Rate Increase: The VAT rate will gradually increase from 7.5% to 15% by 2030.

- Essential Goods Exemption: Essential goods like food, medicine, and energy are exempt from VAT.

- Tax Reform Bills: The four tax reform bills submitted to the National Assembly are the Nigeria Tax Bill, the Nigeria Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.

- Implementation Concerns: Critics argue that the reforms lack safeguards for economically weaker states and may worsen regional disparities.

- Need for Inclusive Consultation: The lack of engagement with state governments, labor unions, and civil society organizations undermines the legitimacy of the reforms.