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Coalition Of Northern Women Urges Tinubu Govt To Stop Proposed VAT Increase

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January 21, 2025

This recommendation was made during a town hall meeting at Mumbayya House in Kano State, aimed at discussing the implications of the proposed Tax Reform Bills on Nigerian women.

The Coalition of Northern Groups (CNG) Women Wing, in collaboration with civil society organizations (CSOs) and other stakeholders, has urged President Bola Tinubu’s administration to halt the proposed increase in Value Added Tax (VAT) and instead reduce the current VAT rate to 3%.

This recommendation was made during a town hall meeting at Mumbayya House in Kano State, aimed at discussing the implications of the proposed Tax Reform Bills on Nigerian women.

The groups argued that a VAT reduction would alleviate financial burdens on citizens and businesses while promoting economic activity.

They emphasized the need for alternative revenue-generation strategies to avoid further pressure on ordinary Nigerians.

The women’s wing highlighted ambiguities within the tax reform bills that require clarification, including the definitions of terms such as “derivation” and “family wealth,” to prevent misinterpretation and ensure equitable resource allocation.

The group in a statement signed by Pamela Nankling Nanle, the National Women Leader of the Coalition, stressed that increased taxation could displace women entrepreneurs already struggling with inadequate resources.

She added that indirect taxes on goods and services might raise the cost of essential items, such as food, healthcare, and education, particularly for rural women and marginalized communities.

The statement reads in part, "The Coalition of Northern Groups women wing is willing to put a lot of work into making sure that Northern Nigeria's interests and opinions were taken into consideration. While meticulously highlighting how the proposed reforms could be refined to better meet the needs of all stakeholders

"Many women in Nigeria work in the informal sector, such as street trading, domestic work, and small-scale businesses. These sectors are often under-taxed, but the proposed tax reforms could introduce stricter regulations, making it more difficult for women to sustain their livelihoods.

"Increased taxes on micro and small businesses could displace women entrepreneurs who are already struggling due to inadequate support and resources.

"Many Nigerian women already face challenges regarding economic dependency, with limited access to credit, loans, and financial services. A tax hike could make it even more difficult for women to access capital for business ventures or personal development.

"Women in rural areas and informal economies may be particularly vulnerable to indirect taxes on goods and services, which could raise the cost of essential items such as food, healthcare, and education.”

"Nigerian women, especially those in rural or impoverished areas, rely on social services, including healthcare and education, to improve their quality of life. If the tax bill leads to budget cuts in these sectors, it could undermine the services that many women depend on,” they added.

The women called for tax policies that enhance social safety nets, such as unemployment benefits, healthcare, and childcare services.

“These programs are seen as critical for women who are disproportionately responsible for caregiving and household management.

"Expanding social welfare programs could help counteract the negative impacts of regressive taxes and ensure that women, particularly single mothers, are not pushed further into poverty,” the coalition said.

"The Federal Government should halt the proposed VAT increases and instead reduce the current VAT rate to 3%.

“This reduction will provide relief to citizens and businesses while encouraging economic activity. Alternative revenue-generating strategies must be explored to avoid placing additional financial pressure on ordinary Nigerians,” it added.