Tax Reform Bills: ACF Recommends Retention of 7.5% VAT
The Arewa Consultative Forum (ACF) has proposed that the 7.5% value-added tax (VAT) rate be retained in the Tax Reform Bills.
ACF’s statement was part of a comprehensive collection of observations and suggestions to the National Assembly on the Executive Tax Reform Bills, which aimed to modernise Nigeria’s tax laws.
The group’s actions were the result of a special-purpose committee of specialists set up by its board of trustees that analysed the proposals and made appropriate suggestions.
According to a report signed by ACF’s National Publicity Secretary Tukur Muhammad-Baba, the continuation of the 7.5% Value Added Tax (VAT) rate is consistent with the realities of present economic hardships facing individuals and companies.
It also advocated for increasing the effectiveness of VAT collection, improving revenue collection through the formalisation of informal sectors and the use of digital technology, and vigorously expanding Nigeria’s tax base by supporting private sector investments.
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HIS EXCELLENCY, RT. HON. AHMADU UMARU FINTIRI
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The Forum also proposed eliminating VAT on agricultural equipment and changing the phrases “supply and supplies” in Chapter 6 (VAT), Part 1, Sections 143, 144, 145, and 147 of the Tax Administration Bill to “consumption or consumptions.”.
The Forum also wants the term “derivation” to be properly defined and its distribution to be based on consensus achieved through engagement with states and local governments, as well as recommendations from the Revenue Mobilisation and Fiscal Commission (RMFC).
Furthermore, the northern group advocated for a significant reduction in the powers of the Chief Executive Officer and Chairman of the Board of Directors/Governance of the Joint Revenue Board, claiming that the proposed provisions amount to assigning and concentrating nearly absolute powers of supervision and accountability to a single person.
The Forum also advocated replacing the eight proposed coordinating directors with six executive directors from each geographical zone, with the president nominating the executive directors and the Senate confirming them.
The ACF also recommended the retention of TETFUND and NITD by reclassifying Section 69 of the Draft Nigeria Tax Bill as a Development Levy that should be shared with TETFUND, NITDA, NASENI, and the Education Loan Fund.
It did, however, invite all stakeholders to participate and submit comments to the relevant National Assembly (Senate and House of Representatives) Committees holding public hearings on the proposed tax measures.
“Every interest group is encouraged to take the public hearings seriously enough as to contribute to the emergence of robust laws that will stand the test of time and in the national interest” .