- Proposed Tax Reform Bill in Nigeria is being discussed for its potential impact on the tax system
- Focus on shifting VAT derivation formula to make distribution more equitable
- FIRS chairman presented case for restructuring VAT formula based on consumption
- Current VAT framework favors states with high production capacities like Lagos and Rivers
- New formula aims for more equitable distribution of tax revenue based on consumption
- Reform could bridge development gap between regions and promote national unity
- Concern that states like Lagos and Rivers may see a decrease in revenue share under new formula
- Long-term goal of reform is to share country’s wealth more fairly
Source: thecable.ng
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
