From Umar Dankano, Yola
The League of Northern Democrats (LND) has backed the Nigeria Governor’s Forum (NGF) recent endorsement of a revised Value Added Tax(VAT) sharing formula in the country.
Spokesman of the league, Dr. Ladan Salihu made public the position of the organisation through a press release issued weekend, stressing that the league acknowledged and supports the stance of the NGF at the conclusion of their meeting with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Mr.Taiwo Oyedele, on January 16, 2025.
It was highlighted in the release that, the NGF’s endorsement of a revised Value Added Tax(VAT) sharing formula of 50% based on equality,30% based on derivation and 20% based on population aligns substantially with the recommendations of LND’s Technical Committee on Tax and Fiscal Reforms, presented to the public on December 19, 2024.
“LND welcomes the forum’s recognition of the need for comprehensive tax reforms to modernize Nigeria’s fiscal system,enhance stability and align with global best practices.
“However, there is one critical issue overlooked in the Governors Forum’s communique that requires urgent resolution before LND can fully endorse the reforms: the definition of“derivation”.
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