Nigeria Governors’ Forum endorses Tax Reform Bills, proposes equitable VAT sharing formula

Governors’ Forum endorses Tax Reform Bills

The Nigeria Governors Forum (NGF) has announced its decision to endorse a reviewed version of the controversial Tax Reform Bills pending before the National Assembly.

In the reviewed version, the sharing of VAT based on derivation has been slashed from 60 per cent as proposed in the original bill, to 30 per cent.

The decision to endorse the bills was a clear departure from the hardline posture earlier adopted by the governors when they called on President Bola Tinubu to withdraw the bills from the National Assembly.

The governor’s position was conveyed through a communiqué released after a meeting with the Presidential Fiscal Policy and Tax Reform Committee on Thursday in Abuja.

The communiqué, signed by the chairman of the NGF, Governor AbdulRahman Abdulrazak of Kwara State, called on the two chambers of the National Assembly to resume legislative work on the bills.

The communiqué read, “We, members of the Nigeria Governors’ Forum (NGF) and Presidential Tax Reform Committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:

“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.

Thank you for reading this post, don't forget to subscribe!

LEAVE A REPLY

Please enter your comment!
Please enter your name here