President Bola Tinubu has referred to as on the Nationwide Meeting to expedite the legislative course of relating to the Tax Reform Payments in order that Nigeria can swiftly profit from the reforms.
Bayo Onanuga, Particular Adviser to the President on Data and Technique, disclosed this in a press release on January 17, 2024.
Tinubu additionally expressed his appreciation to the Nigeria Governors’ Discussion board (NGF) for his or her unanimous endorsement of the 4 Tax Reform Payments at present into account by the Nationwide Meeting.
Up to date Tax Legal guidelines is important for {economic} development
- President Tinubu lauded the governors, describing their endorsement as daring management and a dedication to fostering unity amongst leaders nationwide.
- He counseled the governors for transcending regional, ethnic, and political limitations in assist of Nigeria’s improvement.
“Thursday’s productive session between the Nigeria Governors’ Discussion board and the Presidential Committee on Tax and Fiscal Coverage is a commendable instance of cooperation between the Federal and State governments,” the assertion learn.
- The President prolonged particular commendations to the NGF Chairman, Kwara State Governor AbdulRahman AbdulRazaq, for efficiently mobilizing assist amongst his friends for these transformative tax payments.
- He additionally acknowledged the Progressive Governors Discussion board, the Northern Governors Discussion board, and different {groups} for his or her bipartisan decision of controversies surrounding the payments.
Tinubu emphasised that the first purpose of the Tax Reform Payments is “pro-poor.”
The presidency vowed to advertise nationwide pursuits, enhance Nigeria’s {economic} competitiveness, and entice each native and international investments by means of its reforms.
He pressured the necessity to replace the nation’s outdated tax legal guidelines, describing this as important to the federal authorities’s {economic} agenda.
“The President notes that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Coverage Reform highlights the facility of constructive dialog in resolving variations,” the assertion added.
President Tinubu reaffirmed his dedication to partnering with the governors to advertise {economic} development, nationwide concord, peace, and stability.
Lastly, Tinubu urged “the Nationwide Meeting to expedite the legislative course of” for these essential payments to allow the nation to reap the advantages of the reforms swiftly.
He additionally inspired stakeholders with concepts or solutions to have interaction with the continued legislative course of.
What You Ought to Know
On Thursday, the Nigeria Governors’ Discussion board (NGF) endorsed a revised Worth Added Tax (VAT) sharing components, which they consider will guarantee equitable distribution of Nigeria’s assets.
Particulars of the endorsement have been disclosed in a communiqué issued on Thursday and signed by NGF Chairman AbdulRahman AbdulRazaq.
The discussion board reiterated its robust assist for complete tax reform, emphasizing the significance of modernizing Nigeria’s tax system to boost fiscal stability and align with international greatest practices.
The NGF endorsed a revised VAT sharing components as follows:
- 50% based mostly on equality,
- 30% based mostly on derivation, and
- 20% based mostly on inhabitants.
The discussion board additionally agreed there ought to be no improve within the VAT price or discount in Company Revenue Tax (CIT) right now.
Backstory
The revised VAT-sharing components adopted deliberations between the NGF and the Presidential Tax Reform Committee. Earlier than this Bargain, the Taiwo Oyedele-led committee had proposed the next VAT-sharing components:
- 60% based mostly on derivation,
- 20% based mostly on equality, and
- 20% based mostly on inhabitants.
The committee had additionally proposed lowering the Firm Revenue Tax (CIT) price from 30% to 25% over the subsequent two years.
Backstory
Nonetheless, the Northern Governors’ Discussion board, chaired by Gombe State Governor Muhammed Inuwa Yahaya, earlier opposed the derivation-based VAT distribution mannequin.
In a communiqué, the discussion board argued that the proposal undermines the pursuits of the North and different sub-national areas.
Regardless of this opposition, President Tinubu inspired governors and stakeholders to have interaction within the legislative course of.
The Chairman of the Presidential Committee on Fiscal Coverage and Tax Reforms, Mr. Taiwo Oyedele, additionally addressed issues, noting that the present VAT distribution mannequin is unfair not solely to Northern states but additionally to all geopolitical zones.


