By Toba Babalola
Governors from the 36 states of the country have unanimously restated their support for the Comprehensive reform of Nigeria tax law to enhance fiscal stability.
This was part of the communique issued at the end of a Sub-nationals Consultation meeting with Presidential Committee on Tax Reforms held in Abuja.
In the past few months, there had been reactions and counter reactions from different regions of the country over President Bola Tinubu’s tax reform policy, hence the forum with the President Committee on Tax Reforms to further sensitize critical stakeholders on the gains.
Governor Oyebanji led Ekiti State officials including the Commissioner for Finance, Attorney General, Accountant General and Chairman State Internal Revenue Service to the programme.
After hours of closed door meeting, the Chairman of the Nigeria Governors Forum and Kwara State Governor, Alhaji Abdulraham Abdulrasak with some other Governors read the recommendations in the communique, stressing the need to modernize the Nigeria Tax System with a view to aligning it with the best global practices
The forum also endorsed a revised value added Tax sharing formular to ensure equitable distribution of resources with 50% based on equality, 30% on derivation and 20% based on population.
They also agreed that there should be no increase in the Value added Tax rate from the current 7.5% or reduction in corporate income tax from current 30% at this time to maintain economic stability.
The NGF also advocated the continuous exemption of essential goods of agricultural produces from VAT to safeguard the welfare of Nigerian citizens and promote Agricultural activities.
Participants believed that the President Tinubu’s tax reform will offers an opportunity to create a tax system that not only funds essential services but also promotes trust, inclusivity, and collaboration.
