…reject VAT Increase
The Nigeria Governors’ Forum, NGF, has rejected moves by the Federal Government to increase Value Added Tax, VAT.
The governors, while making their position known after a meeting in Abuja on Thursday, said the move is untimely.
According to a communique issued after the meeting, the governors backed President Bola Tinubu’s controversial Tax Reform Bills.
The communique reads, “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.”
