President Bola Tinubu has commended the Nigeria Governors' Forum for endorsing the revised tax reform bills, which include a shift to a derivation-based VAT model. The governors unanimously agreed to the proposal, which has been a subject of controversy.
However, Senator Ali Ndume has rejected the proposed 30% VAT sharing formula, calling it "too high." He suggests that the derivation should be between 10% to 13%, similar to the 13% derivation for oil-producing states. Ndume argues that states generating more VAT should enjoy a higher percentage, just like states generating crude oil and other mineral resources.
The proposed tax reform bills aim to promote national interests, improve Nigeria's economic competitiveness, and attract local and foreign investments. The President believes that the consensus among the governors transcends regional, ethnic, and political barriers, advancing Nigeria's development.
The debate surrounding the tax bills continues, with some arguing that the VAT sharing formula should be revised to benefit states that generate more revenue. Others believe that the proposed 30% derivation is fair and will promote economic growth.
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