Governors Finally Back Tax Reform Bills, Call For A New VAT Sharing Formular - EDU-BIZNEWS

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Thursday, January 16, 2025

Governors Finally Back Tax Reform Bills, Call For A New VAT Sharing Formular





Governors in 36 States, under the aegies of Nigeria Governors’ Forum (NGF)
have finally expressed strong support for  the Federal Government’s controversial tax reform bills, after initial rejection of contents of the bills by some of them from the Northern part of the country 

But the governors after reaching the decision in a meeting held on Thursday with members of the Presidential Tax Reform Committee, however proposed a new sharing formular for value-added tax (VAT).

The forum in a communique issued  at the end of the meeting, “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 governors proposed a revised VAT-sharing formula which they said would ensure equitable distribution of resources.

Despite the heated debates that the tax reform bills have generated, the governors say they support the “continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills”.

Last year, President Bola Ahmed Tinubu sent four tax reform bills to the National Assembly, urging the lawmakers to consider and pass them.

The proposal includes the tax administration bill, Nigeria tax bill, and joint revenue board establishment bill.

Tinubu also wants to repeal the law establishing the Federal Inland Revenue Service (FIRS) which he is seeking to replace with the Nigeria Revenue Service.

But the move has been met with pushback from several sections of the country notably the northern governors and some leaders in that part of Nigeria.

They asked the National Assembly to reject the bills, claiming they were against the region. Some labelled them anti-north.

President Tinubu, however, vowed not to withdraw the bills with the presidency assuring that they are not against any section of the country. It said, rather, they are to improve the lives of Nigerians.

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