By Sabiu Abdullahi
The Nigeria Governors’ Forum has given its seal of approval to the Tax Reform Bills, recommending no increase in the Value Added Tax (VAT) rate.
This decision was reached after a thorough examination of the bills, with the forum proposing a revised VAT sharing formula to ensure resources are distributed fairly.
According to the communique issued by the forum today, the revised VAT sharing formula will allocate 50% of resources based on equality, 30% based on derivation, and 20% based on population.
The governors also agreed that there should be no reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability.
The forum advocated for maintaining the current VAT rate to safeguard citizens’ welfare and promote economic growth.
Also, essential goods and agricultural produce will remain exempt from VAT to support agricultural productivity and citizens’ welfare.
The meeting also recommended removing the terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.The forum expressed its support for the continuation of the legislative process at the National Assembly, which will ultimately lead to the passage of the Tax Reform Bills.
AbdulRahman AbdulRazaq, Chairman of the Nigeria Governors’ Forum, noted the importance of these recommendations, stating that they will ensure economic stability and promote the welfare of citizens.