The Nigeria Governors Forum has expressed support for President Tinubu’s tax reform
This was disclosed in a statement signed by Kaduna State Governor Uba Sani on Thursday.
“The Forum expressed its strong support for reform of the tax system” Sani said.
This possibly brings to an end the opposition to the tax reforms by the Governors.President Bola Tinubu had insisted the bills be allowed to go through legislative process.
Also, it is not clear if all the national assembly members will toe the line of the Governors going forward.
Governor Sani’s statement posted in his X (former Twitter) handle reads: “Today, I joined other members of the Nigeria Governors’ Forum (NGF) at the Subnational Consultations and Engagement with the Presidential Committee on Tax Reforms which was held at the Congress Hall, Transcorp Hilton Hotel, Abuja. The meeting deliberated on critical national issues, including the reform of Nigeria’s fiscal policies and tax system.
“The event afforded Governors and other stakeholders the opportunity to critically x-ray the Tax Reform Bills and seek clarification on a number of issues. I had the privilege of moderating the session on feedbacks and concerns from subnationals. After extensive discussions, the Nigeria Governors Forum (NGF) released a communique signed by the Chairman, His Excellency, Governor Abdulrahman Abdulrazak.
“The Forum expressed its strong support for reform of the tax system and endorsed a revised Value Added Tax (VAT) as follows: 50% based on equality, 30% based on derivation, and 20% based on population. This is to ensure equitable distribution of resources.
“The Forum also resolved that there should be no increase in VAT rate or reduction in Corporate Income Tax (CIT) at this time, to maintain economic stability. While advocating for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity, the Forum recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
“The Nigeria Governors Forum supports the continuation of the legislative process at the National Assembly that will culminate in the passage of the Tax Reform Bills.”
