Home News Governors’ Forum Advocates Strong Tax Reform to Boost Nigeria’s Fiscal Stability

Governors’ Forum Advocates Strong Tax Reform to Boost Nigeria’s Fiscal Stability

by Nwabuko

By Our Reporter

ABUJA (PRECISE POST) – The Governors’ Forum has reiterated its unwavering support for comprehensive reforms to modernize Nigeria’s outdated tax laws, emphasizing the need for a tax system that enhances fiscal stability and aligns with global best practices.

In a statement released following their recent meeting, the Forum endorsed a revised Value Added Tax (VAT) sharing formula aimed at ensuring a more equitable distribution of resources across the country. The proposed formula allocates 50% based on equality, 30% based on derivation, and 20% based on population.

The Forum also discussed the current VAT and Corporate Income Tax (CIT) rates, agreeing that no increase in the VAT rate or reduction in CIT should take place at this time, as such changes could destabilize the economy. The Governors emphasized the importance of continuing to exempt essential goods and agricultural produce from VAT to protect citizens’ welfare and support agricultural growth.

Additionally, the Forum recommended that no terminal clause be introduced for the Tertiary Education Trust Fund (TETFUND), National Agency for Science and Engineering Infrastructure (NASENI), and the National Information Technology Development Agency (NITDA) in the allocation of development levies under the proposed tax reforms.

The Governors also expressed their commitment to advancing the ongoing legislative process in the National Assembly, which is expected to result in the finalization and implementation of the tax reform bills.

You may also like

Leave a Comment

Online Media Published By

Precise Post Online Media Ltd (RC 7570339)

We are team of competent journalists, crafting compelling data-driven stories; shedding light on global news with precision and authority.

Precise Post @2024 – All Right Reserved. Designed and Developed by ObserverNG