The report was compiled by a special-purpose committee of experts.
In a statement yesterday by its National Publicity Secretary Tukur Muhammad-Baba, the ACF said ‘’the proposed tax reforms have far-reaching implications for all sections of the country, not just the North.’’
The forum recommended the retention of the current 7.5 per cent VAT rate, citing the economic challenges faced by Nigerians and businesses.
The statement reads in part:‘’We have taken a meticulous approach to studying the bills and providing recommendations that will benefit the nation as a whole.
“We recognise that the government needs to increase revenue, but we also believe that the current VAT rate already places a significant burden on citizens and businesses.
“Increasing the rate further could have unintended consequences, such as reducing consumer spending and harming economic growth.”
ACF suggested improved VAT collection, formalisation of the informal sector, and utilisation of digital technologies as ways of expanding the country’s tax base.
Another key concern highlighted by the ACF is the definition of “derivation” and its distribution.
The ACF recommended a clear definition of the term to ensure that distribution was based on a consensus reached through consultations with states and local governments.
It said: “The concept of derivation is critical to ensuring that states and local governments receive their fair share of revenue.
“However, the current definition is ambiguous, and we believe it needs to be clarified to avoid disputes and ensure transparency.”
It also recommends a significant reduction in the powers of the Chief Executive Officer and Chairman of the Board of Directors/Governance of the Joint Revenue Board.
