- The Tax Committee, led by Oyedele, backs the revised VAT formula.
- The formula allocates 50% to equality, 30% to derivation, 20% to population.
- Oyedele stresses gradual reforms for economic growth in key sectors.
The Presidential Tax Committee, chaired by Taiwo Oyedele, has endorsed the new Value Added Tax (VAT) sharing formula proposed by state governors, describing it as “equitable.”
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EKO HOT BLOG reports that speaking at The Platform, an event organized by The Covenant Nation, Oyedele emphasized that tax reforms require both technical expertise and political considerations to achieve practical solutions.
Initially, the state governors, under the Nigeria Governors’ Forum (NGF), had opposed the committee’s proposed VAT-sharing formula: 20% based on equality, 60% on derivation, and 20% on population. Following discussions, the governors suggested a revised formula allocating 50% based on equality, 30% on derivation, and 20% on population. Oyedele confirmed the committee’s acceptance of the revised proposal, highlighting the importance of gradual progress in tax reforms.
“You don’t need to cover the entire distance in one leap,” Oyedele stated, underscoring the need for incremental steps and continuous reflection as reforms are implemented.
Oyedele reassured stakeholders that the revised formula would positively impact all sectors of the economy, particularly agriculture, manufacturing, and industries. He urged critics to review the detailed provisions outlined in the committee’s recommendations.
“Priority sectors such as power generation and innovation have been identified for incentives,” he said, encouraging businesses to align with government priorities for growth opportunities.
The revised VAT-sharing formula marks a collaborative effort between the federal government and state governors to ensure fairness in revenue allocation while fostering economic development across Nigeria.
