Governors unite with Presidency in supporting Tax Reform Bills
After weeks of intense filibustering in the National Assembly and heated discussions between some northern governors and President Bola Tinubu over the proposed Tax Reform Bills, the path now seems clear for the passage of the Bills.
Notably, the 36 State Governors, under the umbrella of the Nigeria Governors’ Forum (NGF), have now expressed their support for the tax reform proposals.
These governors, many of whom belong to the same political party, wield significant influence over their respective National Assembly members and can guide their legislative actions.
The Bills are currently before the National Assembly, awaiting consideration and eventual passage into law.
After a meeting with the Oyedele-led presidential tax reform committee, the governors issued a communique, which reads as follows:
“We, the members of the Nigeria Governors’ Forum (NGF), in collaboration with the presidential tax reform committee, convened on January 16, 2025, to discuss critical national issues, including the reform of Nigeria’s fiscal policies and tax system. We reached the following resolutions:
- The Forum reaffirmed its strong support for the comprehensive overhaul of Nigeria’s outdated tax laws. Members recognized the importance of modernizing the tax system to ensure fiscal stability and align with global best practices.
- The Forum endorsed a revised Value Added Tax (VAT) sharing formula aimed at ensuring a fair distribution of resources:
- 50% based on equality
- 30% based on derivation
- 20% based on population
- The members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, in order to maintain economic stability. The Forum also called for the continued exemption of essential goods and agricultural products from VAT, to protect citizens’ welfare and promote agricultural growth.
- The meeting recommended that no terminal clause be included for TETFUND, NASENI, and NITDA in the distribution of development levies under the Bills.
- The Forum fully supports the ongoing legislative process in the National Assembly and encourages the eventual passage of the Tax Reform Bills.
Signed, H.E. AbdulRahman AbdulRazaq Chairman, Nigeria Governors’ Forum & Governor of Kwara State.”
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