The Nigerian Governors’ Forum (NGF) has given its nod to tax reforms aimed at boosting revenue generation, but rejected the proposed increase in the Value Added Tax (VAT) rate.
Rising from a meeting with the Presidential Tax Reform Committee in Abuja, the governors agreed to a revised VAT sharing formula, which is expected to promote a more equitable distribution of resources across the country.
The NGF Chairman, who briefed journalists after the meeting, explained that the governors rejected the VAT increase due to its potential negative impact on consumers and businesses.
The new VAT sharing formula allocates revenues with 50% to be shared equally among all states, 30% to be allocated based on derivation, and 20% to be distributed according to population.
The revised formula is designed to ensure that states receive a fair share of VAT revenues, based on their contribution to the national economy and population.
The NGF also agreed to support tax reforms aimed at increasing revenue generation and reducing dependence on oil revenues. The reforms are expected to promote economic growth and development, while also ensuring that the tax burden is shared fairly among all Nigerians.
The NGF’s decision is seen as a positive step towards promoting economic growth and development, while also ensuring that the interests of all Nigerians are protected.