Tinubu commends Governors’ Forum for supporting tax reform bills, pushes for stronger relationship
Nigerian President Asiwaju Bola Ahmed Tinubu has commended Governor AbdulRahman AbdulRazaq-led Nigeria Governors’ Forum for throwing their unanimous support behind the four Tax Reform Bills currently being reviewed by the National Assembly, saying this is a testament to their courageous leadership and dedication to promoting unity among leaders across the country.
Tinubu, while thanking the governors for their understanding in a statement by his Special Adviser on Information and Strategy, Bayo Onanuga, on Friday, January 17, said updating the country’s outdated tax laws is essential to this endeavour.
The statement reads in part: “President Bola Tinubu expresses his appreciation for the Nigeria Governors’ Forum following their unanimous endorsement of the four Tax Reform Bills currently under consideration by the National Assembly.
“President Tinubu lauds the governors for their bold leadership and commitment to fostering unity among leaders nationwide, transcending regional, ethnic, and political barriers to advance Nigeria’s development.
“Thursday’s productive consultation between the Nigeria Governors’ Forum and the Presidential Committee on Tax and Fiscal Policy is a commendable example of cooperation between the Federal and State governments.
“He extends special commendations to the Chairman of the Governors’ Forum, Kwara State Governor Abdulrahman AbdulRazaq, for successfully galvanising support among his peers for these transformative tax bills to rejuvenate the national economy and enhance Nigeria’s investment climate.
“He also commends the Progressive Governors Forum, the Northern Governors Forum, and all other groups that made the bipartisan resolution of the controversy stirred by the tax bills possible.
“President Tinubu underscores that the primary aim of the Tax Reform Bills, which is pro-poor, is to promote national interests, improve the competitiveness of Nigeria’s economy, and attract both local and foreign investments.
“He said updating the country’s outdated tax laws is essential to this endeavour.
“The President notes that the dialogue between the NGF and the Presidential Committee on Tax and Fiscal Policy Reform highlights the power of constructive conversation in resolving differences.”
Back story
The Informant247 on Thursday, reported that Governor AbdulRahman AbdulRazaq-led Nigeria Governors’ Forum (NGF) had brainstormed with the Federal Government on the tax reform bills forwarded to the National Assembly by President Bola Tinubu, proposing a new sharing formula if the tax reform bills must see the light of the day.
According to Vanguard, the governors, at the end of a meeting of subnational consultations and engagement on Thursday in Abuja with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, declared their support for the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the Tax Reform Bills.
In a communique issued by the NGF Chairman and Governor of Kwara State, Abdul Rahman Abdul Razaq, the Forum endorsed a revised VAT sharing formula to ensure equitable distribution of resources of 50% based on equality, 30% based on derivation, and 20% based on population, adding that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time to maintain economic stability.
Furthermore, they have called for the continued exemption of essential goods and agricultural produce from VAT as that would help safeguard the welfare of citizens and promote agricultural productivity.
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They also, at the end of the meeting, recommended that there should be no terminal clause for the Tertiary Education Trust Fund, TETFUND; National Agency for Science and Engineering Infrastructure, NASENI, and National Information Technology Development Agency, NITDA, in the sharing of development levies in the bills.
The communique read in part: “The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws.
“Members acknowledged the importance of modernising 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: 50% based on equality, 30% based on derivation, and 20% based on population.
“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.”
