- Say No Terminal Clause For TETFund, NASENI, NITDA
GOVERNORS of the 36 States of Nigeria, under the auspices of the Nigeria Governors’ Forum (NGF), have declared support for the tax reform bills presently before the National Assembly for consideration and passage into law.
The governors rose from a meeting with the Oyedele-led presidential tax reform committee Thursday, with a communique demanding for the continued exemption of essential goods and agricultural produce from Value Added Tax (VAT).
The communique signed by Governor AbdulRahman AbdulRazaq, NGF’s chairman, and Governor of Kwara State, stressed that such exemption would safeguard the welfare of citizens and promote agricultural productivity.
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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 governors also said that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
“We, members of the Nigeria Governors’ Forum (NGF) and presidential tax reform 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:
“50% based on equality,
“30% based on derivation, and
“20% based on population.
“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,” the communique further stated.
