The Nigeria Governors’ Forum (NGF) has voiced its support for President Bola Tinubu’s proposed tax reform bills, however; they strongly oppose an increase in the Value Added Tax (VAT)....CLICK HERE TO READ THE FULL ARTICLE➤
This was contained in a communiqué issued on Thursday after a meeting in Abuja with Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee.
The NGF emphasized the need for equitable distribution of VAT and urged lawmakers to pass the proposed tax reform bills.
The communiqué, signed by NGF Chairman, who is also the Kwara State Governor Abdulrahman Abdulrazaq, 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 per cent based on equality, 30 per cent based on derivation, and 20 per cent 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 highlighted the importance of modernizing the tax system to boost fiscal stability, align with international standards, and foster economic growth.
President Tinubu’s tax reform package, submitted to the National Assembly on October 3, 2024, comprises four bills: Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.
The NGF reaffirmed its support for these bills, emphasizing their significance in reforming outdated tax laws to improve Nigeria’s economic framework.
The governors while expressing support for the reform agenda, stressed the importance of protecting citizens by maintaining current VAT rates and exempting essential goods and agricultural products from taxation. ...CLICK HERE TO READ THE FULL ARTICLE➤
Be the first to comment