It will be very difficult for states to pay minimum wage with new tax reforms– Zamfara Governor Lawal on channels television

The Governor of Zamfara State, Dauda Lawal, has raised concern that the introduction of the tax reforms by President Bola Ahmed Tinubu will make it difficult for some States to pay the new minimum wage.

The Governor noted that some less financially buoyant States in the country may not survive if the tax reform bills become operational, reports Daily Post.

Recall that Tax Reform Bills are current before the National Assembly have passed second reading. If when the Bills are approved by the National Assembly they will signed into law by President Tinubu.

Lawal made this disclosure during Channels Television’s Politics Today programme on Tuesday.

Speaking at the programme, the Governors, pointed out that it would be difficult for many States to pay the N70,000 minimum wage if the tax reforms are implemented.

He said, “Some States may not be able to survive. So, it is something that must be carefully studied to ensure 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 to advise our people on the way forward. It’s an ongoing process, and we will continue with the engagement,” the Governor said.

“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. Invariably, it may make it difficult for some States to be able to pay their salaries,” Lawal warned.

The new tax bills introduced by the Tinubu administration have sparked widespread controversy. This is even as scathing criticisms and stiff opposition have emerged many quarters, including the National Economic Council, NEC.

Recall that the Northern Governors Forum has vehemently kicked against the Bills. Their ground is that it is anti-North. A position, the presidency has since denied.