Governors Rejects Tax Hikes, Endorses Revised VAT Sharing Formula
By Faisal A Harande
The Nigeria Governors’ Forum (NGF) today concluded its consultations with the Presidential Tax Reform Committee, expressing strong support for modernizing the nation’s tax laws while advocating for a more equitable distribution of resources.
Key Resolutions:
- VAT Sharing Formula: The NGF endorsed a revised Value Added Tax (VAT) sharing formula that allocates 50% based on equality, 30% based on derivation, and 20% based on population. This move aims to ensure a fairer distribution of revenue among states.
- No Tax Increases: The Forum firmly opposed any increase in the VAT rate or a reduction in Corporate Income Tax (CIT) at this time, citing the need to maintain economic stability.
- Exemptions Maintained: The NGF emphasized the importance of maintaining VAT exemptions for essential goods and agricultural produce to protect citizens and support the agricultural sector.
- TETFUND, NASENI, NITDA Funding: The Forum recommended the continued inclusion of the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in the sharing of development levies.
- Support for Legislative Process: The NGF expressed its support for the ongoing legislative process at the National Assembly, which will ultimately lead to the passage of the Tax Reform Bills.
H.E. AbdulRahman AbdulRazaq, Chairman of the NGF and Governor of Kwara State, signed the communique.
This communique highlights the NGF’s commitment to a more equitable and sustainable tax system that benefits all Nigerians.
Captions:
- NGF Endorses New VAT Sharing Formula, Rejects Tax Hikes
- Governors Advocate for Fairer Revenue Distribution
- No Tax Increases on the Horizon, NGF Declares
- NGF Supports Tax Reform, Prioritizes Economic Stabil
About The Author
