Connect with us

Economy

RMAFC opposes Tinubu’s tax reform bills

says it's an affront against the constitution

Published

on

Revenue Mobilisation, Allocation & Fiscal Commission (RMAFC) Chairman, Mohammed Bello Shehu

The Revenue Mobilisation, Allocation and Fiscal Commission (RMAFC) has expressed its reservations regarding President Bola Tinubu’s proposed tax reform bills, currently before the National Assembly for consideration.

In a detailed nine-page memorandum submitted to the National Assembly on Monday December 9, RMAFC outlined a series of legal, constitutional, and technical objections to the proposed legislation.

According to the document, RMAFC Chairman, Mr. Mohammed Bello Shehu, stated that Section 162(2) of the 1999 Constitution (as amended) grants the Commission the exclusive right to determine the formula for equitable revenue sharing among the three tiers of government.

“The Constitution designates RMAFC as the final authority on matters of revenue allocation,” the memorandum read.

“As such, no Act of Parliament, including the VAT Act, can infringe upon this constitutional responsibility.

“Any such attempt would constitute a violation of the Constitution.”

Shehu further emphasised that RMAFC’s role as the sole arbiter in developing fair revenue allocation formulas must be respected.

Any deviation from its constitutional duties, he argued, could undermine the Commission’s integrity.

RMAFC proposes alternatives

RMAFC proposed an alternative approach to Value Added Tax (VAT) allocation, emphasising the unique nature of VAT as a consumption tax.

The Commission suggested a formula that ensures equitable distribution among the federal, state, and local governments.

In its recommendations, RMAFC urged the federal government, amongst others, to:

  1. Empower the Commission to determine a VAT allocation formula in line with its constitutional mandate.
  2. Reinforce constitutional provisions by ensuring that VAT allocation adheres strictly to RMAFC’s framework, rather than arbitrary provisions in the VAT Act or the proposed reform bills, and,
  3. Facilitate dialogue among federal, state, and local governments to achieve consensus on RMAFC’s formula, thereby reducing tension within the polity.
See also  Days After Referring To VP Harris As Trump, Pres. Biden Makes Another Blunder,  Calls Ukrainian President Zelensky 'President Putin'

The Commission also cautioned against legislative or executive measures that could undermine its authority in VAT matters.

It advocated for enhanced use of electronic methods to track end-user locations, thereby improving transparency and accuracy.

About RMAFC

The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) is a Nigerian agency responsible for overseeing the country’s revenue allocation and fiscal matters.

It was established by Decree No. 49 of 1989, according to information obtained from its website.

The commission ensures that resources are distributed among the beneficiaries of the Federation Account in accordance with constitutional provisions.

Key Functions

Revenue Allocation: Ensures correct application of revenue allocation formulas and distribution of resources among beneficiaries.

Fiscal Responsibilities: Monitors and advises on fiscal efficiency and revenue generation.

Policy Formulation: Develops and reviews policies related to revenue allocation and fiscal matters.

Structure

The RMAFC is headed by a Chairman, currently Mohammed Bello Shehu.

It comprises members from each state of the federation and the Federal Capital Territory, Abuja.

The commission has various departments, including the Allocation Department, Federation Accounts Department, and Planning, Research and Statistics Department.

Recent Developments

RMAFC has been involved in several initiatives, including the review of the revenue allocation formula.

It has also been engaged in the development of a new formula to ensure equity and fairness in revenue distribution.

Interested persons can visit the website for more details.

Abdulateef Ahmed, Lagos State.


For Diaspora Digital Media Updates click on Whatsapp, or Telegram. For eyewitness accounts/ reports/ articles, write to: citizenreports@diasporadigitalmedia.com. Follow us on X (Fomerly Twitter) or Facebook

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest from DDM TV

Latest Updates

INNOSON VEHICLE MANUFACTURING

World Cup watch: Flying Eagles coach reveals opponents have been watching team since Egypt

Again: Petroleum tanker caught fire in Ibadan

Fulani Carnage Can Be Stopped – None Vaillant Campaign

CBEX restores wallet balances of subscribers

UK mum in tears as baby diagnosed with rare genetic condition that has no name

“No judiciary in 2027”: Nigerians reject courts over electoral injustice

Top High-Paying Nigerian Jobs Without University Degree in 2025

Man ends it after 12-year search for $742M lost Bitcoin hard drive

EU adds Monaco and 5 African countries to Blacklist for financial crimes, removes UAE

REVEALED: How Tinubu “killed” Jesutega Onokpasa

Subscribe to DDM Newsletter for Latest News

Get Notifications from DDM News Yes please No thanks