Tuesday, February 11, 2025
HomeNewsNGF  Supports Tinubu’s Tax Reform Bills,  Opposes  VAT increase

NGF  Supports Tinubu’s Tax Reform Bills,  Opposes  VAT increase

The Nigeria Governors’ Forum on Thursday declared support for the Tax Reform Bills President Bola Tinibu submitted to the National Assembly for passage into law.

The Governors insisted on a comprehensive reform of the primitive tax system in the country.

The Governors opposed any increase in  VAT rate or reduction in Corporate Income Tax (CIT) in view of the current state of the economy.

It was also the position of the  governors that the revised VAT sharing formula must reflect  equitable distribution of resources of 50% based on equality, 30% based on derivation, and 20% based on population.

The NGF position was contained in a communique issued at the end of a meeting with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, in Abuja on Thursday.

The 36 governors demanded a fair formula for the sharing of the Value Added Tax generated in the country in the communique  signed by the NGF Chairman and Governor of Kwara State, Abdulrahman Abdulrazaq.

The communique read, “We, members of the Nigeria Governors’ Forum 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:

“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.”

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