The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, yesterday argued that the derivation formula in the tax reform will reduce inequitable distribution of resources.
He stated that some states pushing back on the proposed 60 per cent Value Added Tax (VAT) derivation formula may end up with 100 per cent if the courts eventually decide so.
The Senate proceeded to set up a 10-member committee of ‘elders’ led by Senate Minority Leader, Abba Moro to meet with Attorney General of the Federation’s team on areas of concerns in the bills to douse the lingering tension of the tax reform.
Speaking on Arise Television, Oyedele said that it was surprising that the same states for which the committee was fighting were the ones kicking against the passage of the tax reform bills.
The tax expert’s remarks came as the Senate yesterday directed its committee on Finance to stop further action on the landmark tax reform bills, pending when grey areas of concern raised on the proposed legislations by stakeholders are properly addressed.
