Nigeria’s governors have thrown their weight behind President Bola Tinubu’s tax reform bills, which are currently before the National Assembly. In a communique issued after a meeting with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, the governors endorsed a revised Value-Added Tax (VAT) sharing formula.
The proposed formula aims to ensure equitable distribution of resources, allocating 50% based on equality, 30% based on derivation, and 20% based on population. The governors also 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 Nigeria Governors’ Forum (NGF) reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws, acknowledging the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.
President Tinubu had submitted four tax reform bills to the National Assembly in October 2024, including the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill
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