The Presidential Committee on Fiscal Policy and Tax Reforms has proposed reviewing states’ and local governments’ share of the Value Added Tax revenue to 90 per cent, and reducing the Federal Government’s share from 15 to 10 per cent.
The panel also recommended an upward review of the current 7.5 per cent rates charged to customers. The Chairman of the committee, Taiwo Oyedele, disclosed this at a stakeholder’s exposure and impact assessment session organised to discuss some of the major proposals in the National Tax Policy in Abuja.
The proposals were part of the reforms being introduced to boost the nation’s tax revenue. “We are proposing that the Federal Government’s portion should be reduced from 15 per cent to 10 per cent. States’ portion will be increased but they would share 90 per cent with local governments,” Oyedele confirmed in a meeting with business owners, industry players and other stakeholders on Monday.
The strategic meeting is a vital aspect of engaging stakeholders, ensuring the successful implementation of tax reform policies devised by the current administration to attain a minimum tax-to-GDP ratio of 18 per cent. President Bola Tinubu had inaugurated the fiscal policy and tax reforms committee last August to improve the nation’s revenue profile and business environment by eliminating multiple taxes.
