Governor Dauda Lawal of Zamfara State says some financially less-buoyant states may not survive if the Tax Reform Bills before the National Assembly are passed and signed into law by President Bola Tinubu.
Governor Lawal made his position on the contentious reform bills known on a Channels Television programme: “Politics Today,” on Tuesday.
He said: “Some states may not be able to survive.
“So it is something that must be carefully studied so that we don’t hurt ourselves in the long run.
“Well, the tax issue has a lot of components – there is the good aspect and there is the bad aspect.
“So, we are studying the situation so as to advise our people on the way forward. It’s an ongoing process and we will continue with the engagement.”
Lawal said it would be difficult for many states to pay the N70,000 minimum wage if the tax reforms are implemented.
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He said: “Reform in a system is inevitable and we should always expect reforms.
“However, in trying to do that, we also need to be careful not to be in a hurry to do something that will later hurt us.
“So, I believe we should carefully study the situation, and have a clear understanding and take a common stand.
“There is a component of it that talks about derivation and definitely, if we are to go by it, it is going to affect some of the states in terms of what kind of inflows they have and invariably it may make it difficult for some states to be able to pay their salaries.”
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