BREAKING: Governors Back Tax Reform Bills

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 rose from a meeting with the Taiwo Oyedele-led presidential tax reform committee and declared in a communique as follows:

“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:

1. The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.

2. The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources:

o 50% based on equality,

o 30% based on derivation, and

o 20% based on population.

3. 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.

4. The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.

5. 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.

𝐒𝐢𝐠𝐧𝐞𝐝

H.E. AbdulRahman AbdulRazaq

Chairman, Nigeria Governors’ Forum & Governor of Kwara State.

READ ALSO:

Post Views: 450