₦airaland Forum

After months of back and forth, the Nigerian Governors Forum (NGF) has endorsed the tax reforms bill and provided key recommendations for the VAT sharing formula.

The Nigeria Governors’ Forum (NGF) has finally thrown its weight behind the proposed tax reform bills currently at the national assembly.

In a statement on Thursday, the group proposed an “equitable” sharing formula for value-added tax (VAT).

The development was an outcome of a meeting between the NGF and the presidential tax reform committee, convened on January 16, 2025, to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.

According to the statement, the governors recommended that there should be no terminal clause for TETFUND, National Agency for Science and Engineering Infrastructure (NASENI), and National Information Technology Development Agency (NITDA) in the sharing of development levies in the bills.

They also supported the continuation of the legislative process at the national assembly that will culminate in the eventual passage of the tax reform bills.

“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,” the statement reads.

“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 group advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.

“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.

unclejb2:
The north should account for the gold mined in their region

CodeTemplarr:
What a load of shit they call sharing formulae. Why must Lagos, Rivers or Abia share VAT with useless sharia states that prioritizes religious supremacy above conducive business environment? They even have a portion that's based on population. What are those population doing with their time n resources?

nedu666:
Jagaban don fold

FreeStuffsNG:
VAT on alcoholic beverages should not be accepted by Sharia states .

The State Governors didn't initially give the adequate attention to the proposed tax reform bills, unfortunately it's too late for them to make any significant changes to the original bill

Educationalserv:
why must Lagos collect VAT on Calls made from Sharia state ?

CodeTemplarr:
Do you have any idea of the heat computer chips generate or the extent of mortality in IT HQs? Next time ask the network provider to install the exchange system in your Sharia states and collect the VATs accordingly. VAT is never a reward for consumers but a host for the producers.