By Jemimah Wellington, JKNewsMedia
NIGERIA’s OUTDATED tax policies have taken centre stage as the Governors’ Forum and the Presidential Tax Reform Committee deliberated extensively on 16 January 2025.
The meeting focused on aligning fiscal policies with international standards to foster economic stability and equitable resource distribution.
The Forum expressed unanimous support for overhauling Nigeria’s tax laws, describing them as antiquated and insufficient to meet the demands of a modern economy.
Governors highlighted the critical need to restructure the Value Added Tax (VAT) sharing formula, proposing a balanced approach that distributes 50% equally among states, 30% based on derivation, and 20% according to population.
This adjustment aims to ensure fairness while addressing resource needs.
In the interest of stability, the Forum rejected any immediate increase in the VAT rate or reductions in Corporate Income Tax (CIT).
It also called for continued exemptions on essential goods and agricultural produce to protect vulnerable citizens and promote local food production.
Regarding development levies, governors advocated for removing terminal clauses affecting allocations to TETFUND, NASENI, and NITDA.
These bodies play vital roles in driving research, innovation, and infrastructure development.
The Forum further encouraged the National Assembly to prioritise the legislative process required to pass the Tax Reform Bills.
Governor AbdulRahman AbdulRazaq of Kwara State, who chaired the meeting, stressed the commitment of governors to building a fiscal framework that benefits all Nigerians.
AbdulRazaq also noted that their resolutions reflect the collective push for a more equitable and transparent tax system which aligns with global best practices and ensuring sustainable growth.
