The Study Group set up by the South East Governors Forum to take a critical look at the Tax Reform Bills and make recommendations has concluded deliberations and submitted it’s communiqué.
The study group set up by the Director General, South East Governors Forum Senator Uche Ekwunife, was established to review the Tax Reform Bill and make recommendations to ensure equity, fairness and sustainability in Nigeria’s tax system.
Some of the key observations the group made include,Tax-to-GDP RatioNigeria’s tax-to-GDP ratio is among the poorest globally, hindering development.
VAT Sharing Formula: The proposed formula may disproportionately favor states with higher consumption patterns.
Guiding Principles
To analyze tax bills, the Study Group established the following guiding principles:Recognition of Catchment Areas: Consider regional economic dynamics.
Organized Private Sector (OPS) Engagement: Consult OPS chambers, MAN, Economic Fora, and professional bodies.
Equality of States: Advocate for distribution equality to geopolitical zones.
Empowerment of Regional Economic Commissions: Enhance regional economic development.
Revenues from Solid Minerals: Properly account for revenues from solid minerals.
Recommendations
General Recommendations
Preserve State Powers: Add a clause to protect state powers in tax administration.
Update Revenue Laws: Review and update revenue laws in Southeast states.
Advocacy and Enlightenment: Encourage advocacy and enlightenment on taxation.
End Sit-at-Home Menace: Support economic activities and stability.
Value-Added Tax (VAT).
The Bills require constitutional amendments to navigate. The tax reforms demonstrate thoughtful planning, wealth of experience and proficiency in achieving higher tax efficiency.
“The Southeast Governors’ Forum Study Group on Tax Reform Bills recommends that:
The tax reform bills be passed with amendments where necessary.
Southeast states seek removal of population and landmass as factors in revenue sharing.
Distribution equality to geopolitical zones be advocated.
The communique was submitted by Dr. Kachi Nwoga, Chairman, Chief Blakey Okwudili Ijezie, FCA, Secretary. Other members of the Study Group are Barr. Clem Aguiyi, Hon. Joe Ikunna, Dr. Ubani, FCA
