The Nigeria Governors Forum (NGF) has opposed corporate income tax cuts in the ongoing negotiations about the four tax reform bills sponsored by the presidency.
Governors stated there should be “no reduction in Corporate Income Tax (CIT) at this time”.
FIJ had earlier published an explainer on the Nigeria Tax Bill, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill, and Joint Revenue Board (Establishment) Bill. The bills propose harmonising the country’s multiple tax bills and cutting down taxes for hardworking human and corporate citizens.
Among other resolutions, the NGF recommended that the value-added tax (VAT) sharable between states be revised to 50% based on equality, 30% based on derivation and 20% based on population.
READ ALSO: EXPLAINED: Proposed Tax Bills, What They Would Mean for Nigerians
Signing the communique, Kwara State Governor AbdulRahman AbdulRazaq said that the NGF was not in support of gradually defunding the National Agency for Science and Engineering Infrastructure (NASENI), the Tertiary Education Trust Fund (TETFund) and the National Information Technology Development Agency (NITDA).
COMMUNIQUE ISSUED AT THE END OF THE SUBNATIONAL CONSULTATIONS AND ENGAGEMENT WITH THE PRESIDENTIAL TAX REFORM COMMITTEE.We, members of the Nigeria Governors’ Forum (NGF) andpresidential tax reform committee, convened on the 16th of January2025 to deliberate on critical… pic.twitter.com/QBluTTggdl— Nigeria Governors’ Forum (@NGFSecretariat) January 16, 2025
“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 statement read.
“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.
READ ALSO: Experts Stress FG’s Responsibility to Tax Nigerians Through Reform Bills Without Incapacitating Them
“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.”
As prices of goods and services soar across the country, manufacturers lament that rising operational costs impede their viability and production efficiency.
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