The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has denied reports that his committee proposed a reduction in the Federal Government’s share of the Federation Account Allocation Committee (FAAC).
Rather, he disclosed that the committee’s reforms focussed solely on Value Added Tax (VAT) within the FAAC framework and did not encompass all revenue allocated to the government’s account.
The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) in it’s monthly distribution of the country’s revenue allocates 52.68% to the federal government, 26.72% to states, and 20.60% to local governments.
Reports emerged earlier on Sunday that the committee had proposed a shift in the revenue allocation with 90% of the distribution given to the states and local governments while the federal would take only 10%.
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However, in a statement on Sunday, Oyedele clarified that the report did not reflect the committee’s position, as their reforms focus solely on VAT within the FAAC framework and did not encompass all revenue allocated to the government’s account.
“We did not recommend a reduction in the federal government’s share from the federation account.
“Our recommendation is in respect of VAT revenue, to increase the share of states and local governments from 85% to 90% and for states to discontinue with their other forms of consumption taxes which constitute multiple taxation on businesses and individuals,” Oyedele said.
By: Babajide Okeowo
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