By Milcah Tanimu
Taiwo Oyedele, chair of the Presidential Committee on Fiscal Policy and Tax Reforms, has advocated for a new approach to value-added tax (VAT) distribution. He explained to Northern State Governors that the proposed amendment would create a fairer system by addressing the current model’s inequities, which primarily distribute VAT based on where it is remitted, not where goods or services are supplied.
Oyedele, speaking via X, clarified, “States that produce goods, even if they are VAT-exempt or consumed elsewhere, should receive recognition. This should also apply to services like telecommunications, with VAT reflecting the subscriber’s location.”
This proposal comes as President Bola Tinubu urges the National Assembly to consider four new tax reform bills, including changes to VAT distribution, to create a more balanced system for all states.
