Governors’ Forum Endorses Tax Reform Bills, Offers Significant Recommendations

The Nigeria Governors’ Forum has endorsed the Tax Reform Bills, recommending that there should be no increase in the VAT rate and offering significant recommendations.

According to the Chairman of Nigeria Governors’ Forum, Abdulrahman Abdulrazaq, the forum has endorsed the revised VAT sharing formula to ensure equitable distribution of resources.

”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.”

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