Adjusting their earlier position, the Nigeria Governors’ Forum (NGF), has backed President Bola Tinubu’s controversial Tax Reform Bills, but rejected moves to increase Value Added Tax (VAT) on services rendered to Nigerians or purchases made.
According to a communique issued after the meeting, the governors soft-pedaled after considering several options, especially more explanations offered to them on the benefits of the tax reforms, which will now be slightly modified.
In a communique, they stated: “We, members of the Nigeria Governors’ Forum, NGF and Presidential Tax Reforms 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.
“The Forum endorsed a revised Value Added Tax, VAT sharing formula to ensure equitable distribution of resources:
“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.”
