- Throw Weight Behind Bills, Kick Against VAT increase, CIT Reduction
- Seek “Equitable” Sharing Formula For VAT
- Passage Of Tax Reform Bills To Attract More Investments- Sule
In a major shift from their earlier stance on the controversial Tax Reform Bills, Nigeran 36 state governors under the aegis of the Nigeria Governors’ Forum (NGF) have finally thrown their weight behind the proposed bills currently domiciled at the national assembly
The Matrix reports that since President Tinubu sent the bills to the National Assembly on October 3, 2024, they have been greeted by controversies, outrage, and backlash from some quarters.
Predominantly, the Northern States Governors Forum (NSGF) has kicked against the bills after a joint meeting with the northern traditional rulers’ council at the Kaduna government house on October 28.
Similarly, the National Economic Council (NEC) comprising of the NGF also objected to the bills urging the President to withdraw them.
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However, shortly after a meeting between the NGF and the Presidential Tax Reform Committee, convened on January 16, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, the NGF has offered its strong support for the comprehensive reform of Nigeria’s outdated tax laws.
In a communique issued by its Chairman, Kwara State Governor, AbdulRahman AbdulRazaq, the NGF expressed its support for modernizing the country’s tax system.
The communique read in part, “We, members of the Nigeria Governors’ Forum 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 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.
“The Forum endorsed a revised Value Added Tax sharing formula to ensure equitable distribution of resources: 50 per cent based on equality, 30 per cent based on derivation, and 20 per cent based on population.”
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The NGF also suggested that no terminal clause should be applied to the Tertiary Education Trust Fund, the National Agency for Science and Engineering Infrastructure, and the National Information Technology Development Agency in the allocation of development levies in the bills.
It continued, “Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax at this time, to maintain economic stability.
“The Forum advocated the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
“The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
“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 group advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.
Shortly after this, Nasarawa State Governor, Abdullahi Sule, hailed the development saying that the tax reform bills, if passed by the National Assembly would benefit Nigerians.
The governor stated this on Thursday during an interview on Channels Television’s Politics Today.
He explained that the reforms would attract more investments in the country as well as improve the ease of doing business.
“It is a wonderful day for Nigeria because at the end of the day, we have achieved something through consultations
“Congratulations to Mr. President for actually guiding us through the process when we met with the Tax Reform Committee.
“Mr President recently said that most of these observations you have you can actually go ahead and amend them without necessarily withdrawing the bill.
“This development will benefit Nigeria and attract more investment into the country”.
