The Revenue Mobilisation Allocation and Fiscal Commission (RMAFC) has strongly opposed the proposed value-added tax (VAT) sharing formula in the tax reform bills, citing constitutional breaches.
In a memorandum signed on Monday by Muhammad Shehu, chairman of RMAFC, the commission highlighted several legal, constitutional, and technical objections to the proposed bills.
The proposed tax bill suggests a VAT revenue-sharing formula of 10 percent to the federal government, 55 percent to the state, and 35 percent to the local governments. However, the current VAT revenue-sharing formula shows that the federal government takes 15 percent, states get 50 percent, and 35 percent goes to the local governments.
