By Peter Adelowo
The 36 State Governors under the umbrella of the Nigeria Governors’ Forum (NGF) have declared support for the tax reform bills presently before the National Assembly for consideration and passage into law.
The Governors made their positions known after a meeting with the Oyedele-led presidential tax reform committee in Abuja.
This is contained in a communique signed by the Chairman, Nigeria Governors’ Forum & Governor of Kwara State, AbdulRahman AbdulRazaq
“We, members of the Nigeria Governors’ Forum (NGF) 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 communique reiterates its strong support for the comprehensive reform of Nigeria’s archaic tax laws.
It acknowledges the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.
It endorses 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.
According to the communique Members agree 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 advocates for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
The communique recommends that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of
development levies in the bills.
It supports the continuation of the legislative process at the National Assembly that will culminate in. the eventual passage of the Tax Reform Bills.
