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Governors back tax reform bills, reject VAT increase
The Nigeria Governors’ Forum has finally thrown its weight behind the tax reform bills submitted by President Bola Tinubu to the National Assembly.
The state governors made this known in a communique issued on Thursday at the end of a meeting with the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, in Abuja.
In the communique signed by the NGF Chairman and Governor of Kwara State, Abdulrahman Abdulrazaq, the forum proposed an equitable sharing formula for Value-Added Tax.
The governors 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.
The communique read, “We, members of the Nigeria Governors’ Forum and Presidential Tax Reform Committee, convened on the 16th of January 2025 to deliberate on critical national issues, including the reform of Nigeria’s fiscal policies and tax system, and arrived at the following resolutions:
“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices.
“The Forum endorsed a revised Value Added Tax (VAT) sharing formula to ensure equitable distribution of resources: 50% based on equality, 30% based on derivation, and 20% based on population.
“Members agreed that there should be no increase in the VAT rate or reduction in Corporate Income Tax (CIT) at this time to maintain economic stability. The Forum advocated for the continued exemption of essential goods and agricultural produce from VAT to safeguard the welfare of citizens and promote agricultural productivity.”
The governors stated that there should be no terminal clause for the Tertiary Education Trust Fund, National Agency for Science and Engineering Infrastructure and National Information Technology Development Agency in the sharing of development levies in the bills.
They also supported the continuation of the legislative process at the National Assembly that will culminate in the eventual passage of the tax reform bills.
“The Forum reiterated its strong support for the comprehensive reform of Nigeria’s archaic tax laws. Members acknowledged the importance of modernising the tax system to enhance fiscal stability and align with global best practices,” the statement added.
PUNCH Online reports that on October 3, 2024, Tinubu transmitted four tax reform bills to the National Assembly for consideration, following the recommendations of the Presidential Committee on Fiscal and Tax Reforms for the review of existing tax laws.
The bills include the Nigeria Tax Bill 2024, which is expected to provide the fiscal framework for taxation in the country, and the Tax Administration Bill, which will provide a clear and concise legal framework for all taxes in the country and reduce disputes.
Others are the Nigeria Revenue Service Establishment Bill, which will repeal the Federal Inland Revenue Service Act and establish the Nigeria Revenue Service, and the Joint Revenue Board Establishment Bill, which will create a tax tribunal and a tax ombudsman.
By Kayode Sanni-Arewa
US President-elect, Donald Trump’s incoming administration plans to immediately order a series of deportation raids targeting illegal immigrants after his inauguration.
Chicago is expected to be the first major city targeted by Immigration and Customs Enforcement agents as part of Operation Safeguard, the New York Times reported, citing two people familiar with planning the undertaking.
The massive deportation operation is expected to target criminals and gang members in the United States illegally and run for one week.
Trump has promised to conduct the largest deportation program in U.S. history.
Up to 200 ICE agents are being sent to Chicago to help kick off the operation on Tuesday, the Wall Street Journal reported. The agency has already asked agents to volunteer for the post-inauguration raids.
“There’s gonna be a big raid across the country,” Tom Homan, who will be in charge of U.S. borders once Trump takes office, told Fox News in an interview.
Homan has previously said he will instruct ICE agents to carry out raids on illegal immigrants at their workplaces.
In addition to Chicago, the sweeping crackdown will also target other major U.S. cities with large immigrant populations.
Trump is set to take the oath of office on Monday, January 20, in an inauguration that will take place indoors.
By Kayode Sanni-Arewa
A faith-based civil society organization, CSO that monitors and reports on Hajj and Umrah activities, the Independent Hajj Reporters, IHR, has commended the National Hajj Commission of Nigeria, NAHCON, for selecting a different Saudi-based Hajj service provider for the 2025 Hajj season.
It said the decision would create healthy competition among service providers interested in efficiently, qualitatively, and satisfactorily serving Nigerian pilgrims.
The CSO, in a statement signed by its National Coordinator, Malam Ibrahim Muhammed, in Makkah, Saudi Arabia, and made available to our correspondent on Sunday in Abuja, said the quest for improved Hajj services has been a major challenge for Nigerian pilgrims owing to the repeated failure of providing satisfactory services.
”We applauded the decision to pick another service provider that will cater for the needs of pilgrims within the Masha’ir areas during the five days of Hajj,” he said
The national coordinator, who is currently in Saudi Arabia to monitor the pre-Hajj arrangements, said available information shows that the new company, Mashariq Al Dhahabia, is an experienced provider that has served top-rated Hajj countries, like Indonesia and Malaysia, and ranked among the top five Hajj service providers by the Saudi Arabia Ministry of Hajj and Umrah.
“The company served 249 706 which is the largest number of Hajj pilgrims during the 2023 hajj. They were awarded as the Best Hajj Service Providers during the 2022 Hajj by the Saudi Ministry of Hajj and Umrah,” he stated.
IHR said it further understood that NAHCON is planning to recruit another service provider to provide services for very important personalities, VIP pilgrims so as not to repeat the experience of previous years, which is also a desired step forward.
It, however, urged NAHCON to set a parameter of performance for the newly selected service providers to serve as a baseline for determining continuous patronage, advising that such criteria should be based on pilgrims’ satisfaction and adherence to contractual terms.
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