In a significant development, the 36 state governors in Nigeria have expressed their support for the tax reform bills recently submitted to the National Assembly by President Bola Tinubu. However, Naija247news gathered that this endorsement comes with a crucial caveat: the governors are vehemently opposed to any increase in the Value Added Tax (VAT) rate.
Thank you for reading this post, don't forget to subscribe!Naija247news understands that the governors, under the aegis of the Nigeria Governors’ Forum (NGF), have engaged in extensive deliberations with the Federal Government on the proposed tax reforms. While recognizing the need for a robust and efficient tax system, they have raised concerns about the potential impact of a VAT hike on the already burdened Nigerian populace.
According to Naija247news, the governors argue that an increase in VAT would disproportionately affect low-income earners and further exacerbate economic hardship. They have instead proposed a comprehensive review of the current VAT sharing formula, advocating for a more equitable distribution of revenue among the states.
Naija247news reports that the governors believe that a fairer revenue-sharing arrangement would incentivize states to improve their internal revenue generation capacities, thereby reducing over-reliance on federal allocations. They have emphasized the need for a collaborative approach that addresses the concerns of both the federal and state governments while ensuring a balanced and sustainable tax system for the nation.
The stance of the governors underscores the delicate balance between the need for revenue generation to fund critical public services and the imperative to protect the welfare of Nigerian citizens. As the tax reform bills progress through the legislative process, the debate over VAT and revenue sharing is expected to intensify.
