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Wednesday, February 19, 2025
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JUST IN: Governors endorse new tax reform

By Chidera Oma

After months of deliberation, the Nigerian Governors Forum (NGF) has officially endorsed the President Bola Tinubu’s tax reforms bill, presented before the National Assembly for approval.

After the endorsement, the governors recommended a Value-Added-Tax (VAT) sharing formula, proposing that 50% be for equity, 30% set aside for derivation, and consumption tax gets 20% of the revenue.

During the subnational consultations and engagement meeting, with the Chairman of Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele on Thursday, the governors agreed that there should be no increase in the VAT rate and a reduction in Corporate Income Tax (CIT) to maintain economic stability.

The 36 Executives also advocated for the continued exemption of the essential goods and agricultural produce from the VAT to safeguard the welfare of the citizens and promote agricultural productivity.

In a Communique signed by the NGF Chairman and Governor of Kwara State, Abdul Rahman Abdul Razaq, the forum recommended that there should be no clause for the Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure and the National Information Technology Development Agency in the sharing of development levies in the bills.

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