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HomeNaija NewsNigeria Governors Forum supports Tinubu on tax reform, propose new VAT sharing...

Nigeria Governors Forum supports Tinubu on tax reform, propose new VAT sharing formula

The 36 Governors, under the auspices of the Nigeria Governors’ Forum (NGF), have engaged in productive discussions with the Federal Government regarding the tax reform bills introduced to the National Assembly by President Bola Tinubu.

During a subnational consultation meeting on Thursday in Abuja, led by Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, the Governors expressed support for advancing the legislative process to ensure the passage of the tax reform bills.

At the meeting, the Governors proposed a new revenue-sharing formula as a key condition for backing the reforms, emphasising the need for fairer distribution if the tax bills are to gain their full backing.

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The Governors’ endorsement paves the way for the continuation of the legislative process, signaling their commitment to reforms that could reshape the country’s tax structure.

This was made known via a statement by the Chairman, Nigeria Governors’ Forum, who also doubles as the Governor of Kwara State, AbdulRahman AbdulRazaq, on Thursday, 16th of January 2025.

The statement reads:

“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:

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“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.

“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.

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“The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.

“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.” [CONTINUE READING HERE]>>>>>



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