The Nigeria Governors’ Forum (NGF) has endorsed the Tax Reform Bills while recommending measures to ensure equitable resource distribution and economic stability.
In a statement by its Chairman, AbdulRahman AbdulRazaq, the Forum agreed to a revised Value Added Tax (VAT) sharing formula: 50% based on equality, 30% on derivation, and 20% on population. This formula aims to balance resource allocation across states.
The Forum rejected any increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time, citing the need to maintain economic stability. Governors also advocated for continued VAT exemptions on essential goods and agricultural produce to protect citizens’ welfare and boost agricultural productivity.
Additionally, the NGF recommended the removal of terminal clauses for development agencies, including TETFUND, NASENI, and NITDA, in the sharing of development levies outlined in the bills.
The Forum expressed full support for the legislative process at the National Assembly, urging swift passage of the Tax Reform Bills to enhance the country’s fiscal framework.
