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NIGERIA- The Nigeria Governors’ Forum, on Thursday, has express their support for President Bola Tinubu’s proposed tax reform bills but did not back the proposed increase in the Value Added Tax (VAT).
In a communique issued by the chairman and Kwara state governor, Abdulrahman Abdulrazaq, the forum, at a meeting in Abuja with the chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, also demanded an equitable VAT distribution.
The communique read: “The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.
“The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.
“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.”
The governors called for the passage of the tax reform bills into law as they reiterated their support for the comprehensive reform of the country’s outdated tax laws. They “acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.”
The four tax reform bills presented by Tinubu to the National Assembly on October 3, 2024, include the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill.
