By Amah
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The Nigeria Governors’ Forum, NGF, on Thursday backed the tax reform bills submitted by President Bola Tinubu to the National Assembly.
The NGF made their position known in a communique issued at the end of a meeting held in Abuja with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele.
The four tax reform bills, Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill and the Joint Revenue Board Establishment Bill were forwarded to the National Assembly for approval by President Tinubu on October 3, 2024.
The bills faced mixed reactions.
Governors, leaders and groups from the northern region voiced their disapproval, claiming the bills were to marginalise and shortchanged them in equal sharing of proceeds from VAT to states.
However, In the communique signed by the NGF Chairman and Governor of Kwara State, Abdulrahman Abdulrazaq, the governors said they were in support of the bill but proposed an equitable sharing formula for Value Added Tax.
“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 communique read.
“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.
