- Oyedele noted that value-added tax (VAT) derivation is sensitive for states due to its difference from oil and gas derivation based on production.
Taiwo Oyedele, chairman of the presidential committee on tax policy and fiscal reforms, has said that efforts are in place to safeguard states’ interests opposed to proposed tax reform bills.
Oyedele shared his thoughts on ‘The Morning Show’, an Arise Television programme, on Wednesday.
Since President Bola Tinubu sent the tax reform bills to the national assembly, they have faced criticism.
The bills have received mixed reactions, with some northern stakeholders strongly opposing them.
Oyedele expressed surprise that the federal government expected resistance from Lagos and Rivers states. Instead, the northern states pushed back, which was unexpected.
“We had not envisaged that this was going to be pushback from the other states; we thought the pushback would come from Lagos mostly maybe a little from Rivers,” Oyedele said.
“It’s almost like we ended up with the people we are fighting for, are now fighting us.”
Oyedele emphasized that value-added tax (VAT) derivation is a sensitive issue for states due to its difference from oil and gas derivation.
He added that the federal government’s proposal aligns with the constitution.
“VAT derivation I think that word is sensitive because people think about where it’s based on production. If they’re not producing crude oil, you don’t get any part of that derivation,” Oyedele said.
“Whereas for VAT, every state consumes. If you share anything based on VAT derivation, everyone gets something from it.”
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