Our committee did not propose reduction of FG’s share in FAAC allocation to 10% – Oyedele

Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has dismissed reports suggesting that the committee is proposing a reduction in the federal government’s share of the Federation Account Allocation Committee (FAAC) to 10%.

In a statement on Sunday, Oyedele responded to claims suggesting that his committee is advocating for the federal government to receive only 10% of FAAC, while the remaining 90% would go to state and local governments.

He clarified that the report does not reflect the committee’s position, as their reforms focus solely on Value Added Tax (VAT) within the FAAC framework and do not encompass all revenue allocated to the government’s account.

Oyedele said: “We did not recommend a reduction in the federal government’s share from the federation account.

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“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.”