The Nigeria Governors’ Forum (NGF) has expressed its support for the ongoing Tax Reform Bills, emphasizing key recommendations to maintain economic stability and ensure fairness in resource allocation.
In a statement issued by the NGF Chairman, AbdulRahman AbdulRazaq, the Forum endorsed a revised Value Added Tax (VAT) sharing formula as follows:
- 50% based on equality,
- 30% based on derivation, and
- 20% based on population.
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The Governors agreed that the VAT rate should remain unchanged, and no reductions should be made to Corporate Income Tax (CIT) at this time to avoid destabilizing the economy. Additionally, they advocated for the continued exemption of essential goods and agricultural products from VAT to protect citizens’ welfare and boost agricultural productivity.
The Forum also recommended that there should be no terminal clauses for TETFUND, NASENI, and NITDA in the sharing of development levies proposed in the bills. This, they believe, will support sustained funding for critical developmental projects.
Finally, the NGF expressed its commitment to supporting the legislative process at the National Assembly to ensure the successful passage of the Tax Reform Bills.
