Gov Otti, Others Issue A Communique After A Subnational Consultation And Engagement With The Presidential Tax Reform Committee

By
Samuel Anyanwu
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Gov Otti, Others Issue A Communique After A Subnational Consultation And Engagement With The Presidential Tax Reform Committee

FIC Report (Abia State) – The Nigeria Governors’ Forum (NGF), has released a communique on the Presidential Tax Reform Bill proposed by President Ahmed Bola Tinubu, CGFR.

The communique was released after a subnational consultation with the Presidential Committee on Tax Reforms.

The Governor of Abia State , Dr. Alex Chioma Otti, OFR, who was part of the meeting was ably represented by his Deputy, Engr. Ikechukwu Lekwachi Emetu, FNSE.The event held at Transcorp Hilton, Abuja between Thursday, 16th to Friday, 17th of January, 2025.

The communique read thus:

“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:

  1. 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.
  2. The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources:
    a) 50% based on equality,
    b) 30% based on derivation, and
    c) 20% based on population.
  3. 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.
  4. The meeting recommended that there should be no terminal clause for TETFUND, NASENI, and NITDA in the sharing of development levies in the bills.
  5. 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 was signed by the Chairman, Nigeria Governors’ Forum and Governor of Kwara State, His Excellency, AbdulRahman AbdulRazaq.

Signed

Amah Ijeoma
FIC Correspondent
Deputy Governors office

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