Nigerian governors have thrown their support behind the federal government’s tax reform proposals. They do, however, propose a new VAT-sharing system.
On Thursday, the Nigeria Governors’ Forum (NGF) and the Presidential Tax Reform Committee met and made the decision.
Read Also: Wike Revokes 568 Land Allocations Over Unpaid C-of-O Fees [FULL LIST]
In a communique issued following the meeting, the governors’ forum “reiterated its strong support for 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”.
The governors recommended a revamped VAT-sharing mechanism, which they claimed would ensure a fair distribution of resources.
The NGF proposes a new sharing formula that prioritises equality (50%), derivation (30%), and population (20%).
“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 communique issued by the Chairman of the NGF and Governor of Kwara State Abdul Rahman Abdul Razaq read.
“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.”
rewrite The NGF proposed that the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) have no terminal clauses in the laws when it comes to sharing development levies.
Despite the heated debates that the tax reform bills have generated, the governors say they support the “continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills”.
For More Information And News Update, Join Informant Online WhatsApp Channel With Link Below:
https://whatsapp.com/channel/0029VaihFajBadmT29ufud2Z
https://whatsapp.com/channel/0029VaihFajBadmT29ufud2Z
