The Nigeria Governors Forum, comprising the 36 state governors in the country have finally thrown their weight behind the proposed Tax Reform Bills of President Bola Tinubu.
The governors have also endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources.
The governor expressed their support in a communique issued at the end of a their sub national consultations and engagement with the Presidential Tax Reform Committee in Abuja on Thursday.
Alhaji AbdulRahman AbdulRazaq
Chairman, Nigeria Governors’ Forum & Governor of Kwara State signed the communique on behalf of his governor colleagues.
“The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources :
o 50% based on equality,
o 30% based on derivation, and o 20% based on population,” the communique said.
Governors, however, agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, to
maintain economic stability.
They also advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
Full text of the communique :
“COMMUNIQUE ISSUED AT THE END OF THE SUBNATIONAL CONSULTATIONS AND ENGAGEMENT WITH THE PRESIDENTIAL TAX REFORM COMMITTEE.
“We, members of the Nigeria Governors’ Forum (NGF) and
presidential tax reform committee, convened on the 16th of January
2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following
resolutions :
“1.The Forum reiterated its strong support for the comprehensive
reform of Nigeria’s archaic tax laws.
“Members acknowledged
the importance of modernizing the tax system to enhance fiscal
stability and align with global best practices.
“2. The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources :
o 50% based on equality,
o 30% based on derivation, and
o 20% based on population.
“3. Members agreed that there should be no increase in the VAT
rate or reduction in Corporate Income Tax (CIT) at this time, to
maintain economic stability.
“The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
“4. The meeting recommended that there should be no terminal
clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
“5. The meeting supports the continuation of the legislative process at the National Assembly that will culminate in the
eventual passage of the Tax Reform Bills.
“𝐒𝐢𝐠𝐧𝐞𝐝
AbdulRahman AbdulRazaq
Chairman, Nigeria Governors’ Forum & Governor of Kwara State.”
(vitalnewsngr.com)
