The Nigeria Governors’ Forum (NGF) has thrown its weight behind President Bola Tinubu’s tax reform bills, proposing a new Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources. The proposed formula allocates 50% based on equality, 30% based on derivation, and 20% based on population.
The governors rejected any increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, citing the need to maintain economic stability. They also advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard citizens’ welfare and promote agricultural productivity.
Additionally, the NGF recommended that there should be no terminal clause for the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in the sharing of development levies
President Tinubu’s tax reform bills, transmitted to the National Assembly on October 3, 2024, aim to modernize Nigeria’s tax system and enhance fiscal stability. The bills include the Nigeria Tax Bill 2024, Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.
