Tax Reform Bill: Reshaping Nigeria’s Economy Through Equitable VAT Distribution Formula

• 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.

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