No proposal for FG to reduce FAAC share- Oyedele
Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele
Abdullateef Fowewe
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has denied report on a proposed Federation Account Allocation reduction.
He revealed in an X (formally Twitter) post on Sunday while debunking a report that the committee proposed reduction in the Federal Government shares.
Oyedeld clarified that the tax committee did not recommend a reduction in the Federal Government’s share from federation account, stating that the committee proposal is in respect of value-added tax (VAT) revenue, to increase the share of states and local governments from 85% to 90%.
He wrote, “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.”
Dailyeconomy recalls that in the second quarter of 2024, FAAC disbursed a total of N3.473 trillion to all tiers of government, with states receiving N1.337 trillion.
