A group of Nigerians has rejected the proposed VAT sharing formula endorsed by the Governors Forum, which allocates 50% based on equality, 30% based on derivation, and 20% based on population. The group, Citizens Network for Peace and Development in Nigeria, argues that this formula doesn't take into account productivity and economic growth, which are critical factors in determining a state's contribution to the national economy.
Instead, the group supports President Bola Tinubu's Tax Reform Bill, which aims to reduce the tax burden on low-income earners and ensure that funds are available for public services that benefit marginalized communities. The bill also seeks to promote equity and fairness by making high-income earners and large corporations contribute proportionally more to national development.
It's worth noting that the Governors Forum had initially rejected the proposed tax amendment bills, citing concerns that they would jeopardize the well-being of people in their regions. However, after meeting with the Presidential Tax Reform Committee, they endorsed the revised VAT sharing formula.
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