A group has criticized the Nigerian governors over the newly proposed 50% Value-Added Tax (VAT) sharing formula. The governors, who met with the Presidential Tax Reform Committee, agreed to share VAT proceeds based on 50% equality, 30% derivation, and 20% population basis.
The criticism comes after the governors endorsed the new VAT sharing formula, which some argue may not adequately address the needs of all regions. The Northern Governors' Forum had initially rejected the proposed tax amendment bills, stating they would jeopardize the well-being of people in the region.
However, Taiwo Oyedele, chairman of the Presidential Tax Reform Committee, has stated that his committee has no objection to the governors' proposed VAT sharing formula. Oyedele emphasized that tax reforms require considering both technical and political factors.
The proposed tax reform bills are currently being considered by the National Assembly, and their passage is expected to have significant implications for Nigeria's tax system and economy.
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