The Arewa Consultative Forum (ACF) has made significant recommendations during the ongoing two-day public sitting of the Tax Reform Bills in Abuja. The forum called for the removal of VAT on agricultural equipment and proposed changes to the wording of certain sections of the Tax Administration Bill. In particular, ACF suggested that the terms “supply and supplies” in Chapter 6, Part 1, Sections 143, 144, 145, and 147 should be replaced with “consumption or consumptions.”
The forum also voiced support for maintaining the current 7.5% VAT rate in the proposed Tax Reform Bills, citing the prevailing economic challenges facing Nigerians. Additionally, ACF urged improved VAT collection efficiency and the formalization of the informal sector using digital technologies to expand Nigeria’s tax base.
In its report to the National Assembly, ACF recommended a clearer definition of the term “derivation” and proposed that its distribution be decided through consultations with states, local governments, and the Revenue Mobilisation and Fiscal Commission (RMFC). The forum also advocated for reducing the powers of the Chief Executive Officer and Chairman of the Joint Revenue Board, calling for more balanced oversight by replacing eight coordinating directors with six executive directors from different geographical zones. These executive directors should be nominated by the president and confirmed by the Senate.
Other recommendations included reworking Section 69 of the proposed Nigeria Tax Bill to create a Development Levy to support institutions like TETFUND, NITDA, NASENI, and the Education Loan Fund.
During the resumed sitting on Monday, the Senate President urged all stakeholders to carefully review the tax reform bills, digest their content, and contribute constructively to developing a more effective and robust tax system.
With additional reports from Channels TV