The Presidency has stated that the proposed derivation-based VAT distribution model was designed to create a fairer system, where the tax is remitted rather than where goods and services are supplied or consumed, thereby correcting the inherent inequity in the current model as a basis for distributing VAT revenue.
This is in response to the recent opposition of the Governors’ Forum to the new derivation-based model for Value-Added Tax (VAT) distribution, included in the new tax reform bills before the National Assembly at a recent meeting in Kaduna.
It says the new policy initiatives are aimed at streamlining Nigeria’s tax administration processes, enhancing efficiency, and eliminating redundancies across the nation’s tax operations, allaying the of possible increase in the number of taxes currently in operation.
The Presidency assures that the reforms will not lead to job losses, but that they are structured to stimulate new avenues for job creation by supporting a dynamic, growth-oriented economy.
