The Nigeria Governors’ Forum has endorsed the Tax Reform Bills, recommending that there should be no increase in the VAT rate and offering significant recommendations.
”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 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.”
– AbdulRahman AbdulRazaq Chairman, Nigeria Governors’ Forum
Nigeria Governors’ Forum Backs Tax Reform Bills, Opposes VAT Rate Hike, and Makes Key Recommendations
The Nigeria Governors’ Forum (NGF) has officially endorsed the Tax Reform Bills, emphasizing that the Value Added Tax (VAT) rate should remain unchanged and providing several critical recommendations to promote economic stability.
The Forum proposed a revised VAT sharing formula to ensure equitable resource distribution:
50% based on equality,
30% based on derivation, and
20% based on population.
Governors agreed that maintaining the current VAT rate and Corporate Income Tax (CIT) levels is essential to sustaining economic balance. They also called for the continued exemption of essential goods and agricultural produce from VAT to protect citizens’ welfare and support agricultural growth.
Additionally, the NGF recommended removing any terminal clauses for TETFUND, NASENI, and NITDA in the allocation of development levies, as outlined in the reform bills.
“The Forum supports the continuation of the legislative process at the National Assembly, which will lead to the eventual passage of the Tax Reform Bills,” said AbdulRahman AbdulRazaq, Chairman of the NGF.
