Business and Economy
Governor Sule joins colleagues as NGF takes stand on tax reforms
By David Odama
Governor Abdullahi Sule of Nasarawa State has joined his colleagues as the Nigeria Governors’ Forum (NGF), takes it stand on the ongoing debate on the tax reforms initiated by President Bola Ahmed Tinubu.
The NGF made it stand on the tax reforms after meeting with the presidential tax reform committee, in Abuja Thursday.
The meeting was part of the subantional consultations and engagement on the tax reform bills presently before the national assembly.
The meeting deliberated on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.
In a communique issued at the end of the meeting, signed by the NGF Chairman and Governor of Kwara State, AbdulRahman AbdulRazaq, the forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws, with members acknowledging the importance of modernizing the tax system to enhance fiscal stability and align with global best practices.
The forum equally endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources as follows; 50% based on equality; 30% based on derivation, and 20% based on population.
Part of the communique issued by the NGF reads:
“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.”