The Civil Society Legislative Advocacy Centre (CISLAC) has called on the National Assembly to ensure that the Nigeria Tax Bill 2024 promotes equity, transparency, and sustainable governance.
According to CISLAC’s Executive Director, Auwal Musa Rafsanjani, “The Nigeria Tax Bill, 2024, holds the potential to transform the country’s fiscal framework… however, CISLAC strongly urges the National Assembly and the Executive to critically examine and address key gaps in the bill.”
Rafsanjani expressed concerns about the proposed derivation model for VAT revenue distribution, stating that “The proposed derivation model for VAT revenue distribution risk deepening economic disparities among states”
“VAT must be collected at the point of sale rather than remitted to corporate headquarters to enhance transparency and prevent regional disparities in revenue allocation” Rafsanjani added
He recommended the establishment of an Equalization Fund to support less-developed states, emphasizing that “Addressing such systemic inequities requires a constitutional review.”
CISLAC also cautioned against the proposed increase in VAT rates, which may exacerbate inflation and poverty. Rafsanjani advised that “The current VAT rate of 7.5% should be maintained until the economy stabilizes, coupled with measures to shield vulnerable populations from price shocks.”
The organization further emphasized the need for transparency in tax incentives, strengthening the enabling laws of the Nigerian Investment Promotion Commission (NIPC), and ensuring that large corporations and multinational enterprises contribute their fair share to national revenue.
Rafsanjani concluded by urging the National Assembly to engage with stakeholders, including civil society organizations, to ensure that the bill reflects the aspirations and needs of all Nigerians.
