JUST-IN: Govs endorses Tinubu’s tax reform bills

After prolonged deliberations, the Nigerian Governors’ Forum (NGF) has officially endorsed the Tax Reforms Bill, providing crucial recommendations to resolve the contentious issue of the VAT sharing formula.

In a statement, the NGF proposed a revised formula to ensure equitable distribution of Value Added Tax (VAT) revenue among states. The recommended formula allocates:

50% based on equity,

30% based on derivation, and

20% based on consumption.

The move aims to balance fairness, regional production contributions, and consumption patterns across the country.

The VAT sharing formula has been a key sticking point in the bill’s legislative process, with stakeholders expressing differing views on how best to distribute revenue. The NGF’s endorsement and recommendations are expected to streamline discussions and foster progress on the reforms.

The forum emphasized its commitment to reforms that promote fiscal transparency, equitable resource allocation, and sustainable economic development across all regions of Nigeria.