The sharing formula proposed by the governors forum for the tax reform bills before the National Assembly have been met with rejections as stakeholders across different states in the country on Friday met in Abuja, where they also rejected the governor’s position.
The governors had In the communique signed by the Chairman of the Nigeria Governors Forum and governor of Kwara State, AbdulRahman AbdulRazaq, said the revised VAT sharing formula must ensure equitable distribution of resources of 50% based on equality, 30% based on derivation, and 20% based on population.
Though, President Bola Tinubu in a statement praised the governors for endorsing bill, noting that he has no doubt that their input would be considered when the bill is being considered at the National Assembly.
But rising from their meeting the stakeholders in a communique signed by 47 members and read by Okorie Ikechukwu Raphael, said, “We, the undersigned representatives of the Nigerian populace, driven by our collective aspiration for equity, justice, and economic progress, have gathered to express our unified position on the Tax Reform Bill currently before the National Assembly.
“We categorically reject the Nigeria Governors Forum’s proposed VAT sharing formula, which allocates 50% based on equity, 30% based on derivation, and 20% based on population.
“This formula does not take into account productivity and economic growth, which are critical factors in determining a state’s contribution to the national economy.
“By ignoring productivity, this formula may inadvertently penalise states that are making concerted efforts to diversify their economies and promote economic growth.
“We urge the National Assembly to reconsider this proposal and adopt a more nuanced approach that rewards productivity and economic growth.”
