Taiwo Oyedele, de Chairman of de Presidential Committee on Fiscal Policy and Tax Reforms, don deny report say dem plan to reduce de Federal Government‘s share from de Federation Account Allocation Committee (FAAC).
Oyedele make dis clarification via his handle on X.com on Sunday, reacting to a report by one online news platform. He say de committee’s recommendation no be about reducing FG’s share from FAAC, but rather about Value-Added Tax (VAT) revenue.
According to Oyedele, de committee recommend to increase de share of states and local governments from VAT revenue from 85% to 90%. He also advise states and local governments to stop imposing “consumption taxes” which cause multiple taxation on businesses and individuals.
At de September 2024 FAAC meeting in Abuja, de committee disburse a total sum of N1.2 trillion earned as revenue in August 2024 to de FG, states, and local governments. Oyedele explain say de new distribution formula include a clause stipulating that 60 per cent of de states and local governments’ share will be based on de principle of derivation.
Dis change in de sharing formula be part of broader reforms aimed at eliminating numerous “nuisance taxes” and streamlining de tax collection process. Oyedele note say de Federal Government make dis concession to get states on board with a centralised and more efficient tax collection system.
