The Nigerian Governors’ Forum on Thursday declared their support for the ongoing tax reforms in the country just as they released a revised sharing formula for the Value Added Tax (VAT).
NPO Reports that the tax reform has remained a major cause of agitation since the committee handling it was set up by President Bola Tinubu.
Different sections of the country had expressed disapproval owing to alleged bias against them.
The Governor of Bauchi Mohammed Bala, had been known to be very critical of the reforms.
Chairman of the Nigeria Governors’ Forum, Governor Abdulrazaque Abdulrahman, addressing the press on Thursday said the forum endorsed the Tax Reform Bills, recommending that there should be no increase in the VAT rate and offering significant recommendations.
”The Forum endorsed 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.
”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. ”The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills. “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.”
The Forum, after its meeting released the communique with a promise to convey their resolution to the president.