• Commission warns of risks to unity and fairness
• Urges respect for constitutional revenue-sharing framework
Tayo Busayo, Abuja
DAILY COURIER - The Revenue Mobilisation, Allocation, and Fiscal Commission (RMAFC) has issued a stern rejection of President Bola Tinubu’s proposed tax reform bills, labeling them as a breach of constitutional provisions and a threat to national unity. The commission's opposition, detailed in a nine-page memorandum, underscores concerns over alleged encroachments on its statutory authority.
In the memorandum signed by RMAFC Chairman Mohammed Bello Shehu, the commission argued that Section 162(2) of the 1999 Constitution exclusively empowers it to develop revenue allocation formulas for federal, state, and local governments. The commission stressed that no legislative act, including the Value Added Tax (VAT) Act, could override its constitutional role.
“The Constitution designates RMAFC as the final authority on revenue allocation,” the memo stated. “Any attempt to usurp this authority violates the Constitution and undermines principles of fairness and justice in revenue sharing.”
Key Objections to Tax Reforms
RMAFC outlined several critical issues with the tax reform bills, including:
Constitutional Overreach: The bills allegedly infringe on RMAFC’s exclusive mandate to design equitable revenue allocation formulas.
Flawed VAT Allocation: The proposed reforms fail to recognize VAT as a consumption tax, which requires a nuanced distribution mechanism.
National Unity Risk: The commission warned that bypassing its constitutional role could sow discord among the tiers of government and undermine the spirit of federalism.
Proposed Solutions
To address the contentious issues, RMAFC presented the following recommendations:
Finalize VAT Allocation Formula: Empower the commission to develop a VAT-sharing framework consistent with its constitutional role.
Promote Dialogue: Foster discussions among federal, state, and local governments to reach consensus on a fair revenue allocation model.
Enhance Transparency: Implement measures like electronic invoicing to ensure VAT collections are accurately linked to end-user locations.
Respect RMAFC’s Mandate: Avoid legislative or executive measures that undermine the commission’s authority.
Call for Constitutional Adherence
RMAFC maintained that adhering to its constitutional mandate would ensure fairness in revenue allocation while preventing disputes. The commission also cautioned that the current proposals risk undermining national unity, stating:
“The federal government must respect RMAFC’s authority to safeguard equity, justice, and the principles enshrined in the Constitution.”
The RMAFC is constitutionally tasked with ensuring equitable distribution of the nation’s financial resources among the three tiers of government. It reviews revenue allocation formulas to reflect fairness and monitors accruals and disbursements from the Federation Account for compliance.
As the debate over the tax reform bills continues, the commission’s strong opposition adds a significant dimension to the policy discussion, with stakeholders awaiting the National Assembly’s response to these critical concerns.
