Govs propose new VAT sharing formula, okay tax bills

The Nigeria Governors’ Forum has reiterated its strong support for the comprehensive reform of Nigeria’s outdated tax laws and approved a revised Value Added Tax distribution formula, with 50% allocated based on equality.

In a communique issued by its Chairman, Kwara State Governor, AbdulRahman AbdulRazaq, the NGF expressed its support for modernizing the country’s tax system.

The statement, shared with journalists in Abuja after the subnational consultation and engagement with the Presidential Tax Reform Committee on Thursday, highlighted the importance of updating the tax framework to improve fiscal stability and align with global best practices.

Following approval from the Federal Executive Council, President Bola Tinubu forwarded four tax reform bills to the National Assembly for consideration in October 2024.

The Federal Government explained that the bills aim to revamp the nation’s tax system.

The proposed bills are the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill.

However, the bills sparked diverse opinions across the country with northern leaders opposed to its passage over the Value Added Tax provisions.