NGF
Nigerian Govs Back Tax Bills, Seek Revised VAT Sharing Formula
Nigerian governors have expressed their support for the Federal Government’s tax reform bills, while proposing a new sharing formula for Value-Added Tax (VAT).
This decision was made after a meeting between the Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee.
The governors have suggested a revised VAT-sharing formula, which would allocate 50% based on equality, 30% based on derivation, and 20% based on population.
They believe this new formula would ensure a more equitable distribution of resources.
Also, the governors have recommended that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, in order to maintain economic stability.
They have also advocated for the continued exemption of essential goods and agricultural produce from VAT, to safeguard the welfare of citizens and promote agricultural productivity.
The NGF has also proposed that there should be no terminal clause for the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in the sharing of development levies in the bills.
Despite the controversy surrounding the tax reform bills, the governors have expressed their support for the continuation of the legislative process at the National Assembly, which would ultimately lead to the passage of the Tax Reform Bills.
It’s worth noting that President Bola Tinubu had sent four tax reform bills to the National Assembly last year, which included the tax administration bill, Nigeria tax bill, and joint revenue board establishment bill.
However, the move was met with resistance from some northern governors and leaders, who claimed that the bills were anti-north.
The presidency has assured that the bills are not against any section of the country, but rather aimed at improving the lives of Nigerians.
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