The Governor of Oyo State, Seyi Makinde, said the recommendation was part of resolutions reached at the 144th meeting of the NEC held at the State House, Abuja.
The Oyo State Governor who spoke to the State House Correspondents said that the council agreed that it was important to create room for consensus building and understanding of the bill among Nigerians.
Makinde stated that the Council members agreed it is essential to foster a deeper understanding of the bill among Nigerians before moving forward.
Makinde said: “NEC today took a presentation from the Chairman of the Presidential Committee on fiscal policy and tax reforms. Their main focus is fair taxation, responsible borrowing and sustainable spending.
“The Council acknowledged that the country is underperforming on all indices as regards huge major revenue sources, also tax to GDP ratio and so on.
“So after extensive deliberation, NEC noted the need for sufficient alignment between and amongst the stakeholders for the proposed reforms.
“So, Council therefore recommend the need to withdraw the bill currently before the National Assembly on tax reforms so that we can have wider consultations and also build consensus around these reforms for the benefit of the entire country, and also to give people…for them to know the vision and where we are moving the country in terms of a tax reform, because there’s really a lot of miscommunication, misinformation.
“So, the bill will draw from the National Assembly and then there will be consultations afterwards”, he said.
NEC’s decision is coming days after the Northern Governors kicked against the reform bill and counter explanation by the presidency that the bill was not against the North.
This recommendation comes in the wake of recent endorsements from the Federal Executive Council, chaired by President Bola Tinubu, aimed at streamlining Nigeria’s tax administration processes.
While the Federal Government argues that the proposed reforms will enhance efficiency and eliminate redundancies within the nation’s tax operations, there is significant opposition from northern elites.
The Governors of the 19 Northern States, under the platform of the Northern Governors’ Forum, rejected the new derivation-based model for Value-Added Tax distribution in the new tax reform bills before the National Assembly, at a meeting on October 28, 2024.