Nigerian governors endorses tax reform bills; Tinubu commends endorsement

The Nigeria Governors’ Forum has endorsed the Tax Reform Bills, recommending that there should be no increase in the VAT rate and offering significant recommendations.

” 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 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.

“The meeting supports the continuation of the legislative process at the National Assembly that will culminate in. the eventual passage of the Tax Reform Bills.”
– AbdulRahman AbdulRazaq Chairman, Nigeria Governors’ Forum

Meanwhile, President Bola Tinubu has expressed appreciation to the Nigeria Governors’ Forum following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly.

President Tinubu lauds the governors for their bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.

Thursday’s productive consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy is a commendable example of cooperation between the Federal and State governments.

He extends special commendations to the Chairman of the Governors’ Forum, Kwara State Governor Abdulrahman AbdulRazaq, for successfully galvanizing support among his peers for these transformative tax bills to rejuvenate the national economy and enhance Nigeria’s investment climate.

He also commends the Progressive Governors Forum, the Northern Governors Forum, and all other groups that made the bipartisan resolution of the controversy stirred by the tax bills possible.

President Tinubu underscores that the primary aim of the Tax Reform Bills, which is pro-poor, is to promote national interests, improve the competitiveness of Nigeria’s economy, and attract both local and foreign investments.

He said updating the country’s outdated tax laws is essential to this endeavour.

The President notes that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Policy Reform highlights the power of constructive conversation in resolving differences.

President Tinubu regards the governors as vital contributors to nation-building and affirms his commitment to partnering with them to promote economic growth, national harmony, peace, and stability.

He also encourages other stakeholders with ideas and suggestions for refining the Tax Bills to engage with the ongoing legislative process at the National Assembly.

Finally, President Tinubu urges the National Assembly to expedite the legislative process for these crucial bills so that the country can swiftly reap the benefits of the reforms.