Tax Reform Bills: Arewa Consultative Forum Recommends Retention Of 7.5% VAT

The Value-Added Tax (VAT) rate should still be applied in the tax reforms bills, according to the Arewa Consultative Forum (ACF). &nbsp,

The Executive Tax Reforms Bills, which were intended to radically overhaul Nigeria’s tax laws, contained ACF’s submission in a comprehensive set of observations and recommendations to the National Assembly.

A special purpose committee of experts created by the organization’s board of trustees, who examined the bills and made appropriate recommendations, was responsible for the group’s actions.

ACF claimed that the 7.5% rate of value added tax (VAT) is in line with the reality of the current economic issues facing people and businesses in a report signed by its National Publicity Secretary Tukur Muhammad-Baba.

Additionally, it called for the strengthening of Nigeria’s tax base by encouraging private sector investments, improved revenue collection efficiency, and improved formalization of the informal sectors and the use of digital technologies.

The Forum further recommended that VAT on agricultural equipment should be expunged, and the words “supply and supplies” in Chapter 6 (VAT), Part 1, Sections 143, 144, 145, and 147 of the Tax Administration Bill should be changed to “consumption or consumptions”.

Additionally, the Forum requests that the term “derivation” be clearly and unambiguously defined, and that it be distributed on consensus after consultation with local and state governments as well as the recommendations of the Revenue Mobilisation and Fiscal Commission (RMFC).

The Northern Group also demanded that the Chief Executive Officer and Chairman of the Board of Directors/Governance of the Joint Revenue Board’s (CEO) be significantly less entrusted, noting that the proposed provisions amount to granting and concentrating almost entirely on one person’s authority to have absolute authority over supervision and accountability.

The Forum also requested that six executive directors from each geographical zone be appointed in place of the eight previously suggested coordinating directors, with confirmation from the Senate and nomination by the president.

The ACF’s other suggestions included keeping TETFUND and NITD in place by revising Section 69 of the proposed Nigerian Tax Bill to include a Development Levy, which should be shared with TETFUND, NITDA, NASENI, and the Education Loan Fund.

However, it urged all interested parties to participate and submit submissions to the relevant House and Senate committees holding public hearings on proposed tax bills.

Source: Channels TV