The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee revealed that MTN Nigeria is the largest contributor to the nation’s VAT pool, contributing over N200 billion monthly. During a discussion on tax reforms, it was highlighted that the current VAT distribution system disproportionately benefits states where companies are headquartered, rather than where the revenue is generated.
Proposed reforms aim to ensure a fairer distribution of VAT revenue based on consumption rather than corporate headquarters’ location. An example was given using MTN’s contributions to show how states would benefit more equitably.
The tax reform bill seeks to address fiscal policy issues in Nigeria by proposing revenue redistribution, addressing inefficiencies, and promoting fairness in the tax system. Despite criticisms, proponents argue that the current system is flawed and the proposed changes aim to rectify these discrepancies for a more balanced distribution of VAT revenue.