The Nigeria Governors’ Forum (NGF), has released a communique on the Presidential Tax Reform Bill proposed by President Ahmed Bola Tinubu, CGFR.
The communique was released after a subnational consultation with the Presidential Committee on Tax Reforms.The event held at all Transcorp Hilton, Abuja between Thursday, 16th to Friday, 17th of January, 2025.
The Governor of Abia State, Dr. Alex Chioma Otti, OFR, who was part of the meeting was ably represented by his Deputy, Engr. Ikechukwu Lekwachi Emetu, FNSE.
The communique read thus:
“We, members of the Nigeria Governors’ Forum (NGF) 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:
1.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.
2.The Forum endorsed a revised Value Added Tax (VAT)
sharing formula to ensure equitable distribution of resources:
a).50% based on equality,
b) 30% based on derivation, and
c) 20% based on population.
3.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.
4.The meeting recommended that there should be no terminal
clause for TETFUND, NASENI, and NITDA in the sharing of
development levies in the bills.
5.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 communique was signed by the Chairman, Nigeria Governors’ Forum and Governor of Kwara State, His Excellency, AbdulRahman AbdulRazaq.
