President Bola Tinubu | File Image
Nigeria’s presidency has said that the controversial Tax Bills would serve the states better and enhance their capacity to earn more revenue.
The Senior Special Assistant to the Presidency on Media and Publicity, Temitope Ajayi, gave the assurance in a statement on Wednesday, while explaining the tax bills.
Ajayi listed other ways the bills would serve the states better to include: The federal government ceding 5% out of its current 15% share of VAT revenue to states.
“The Bills will transfer income from the Electronic Money Transfer levy exclusively to states as part of stamp duties.
“The Bills will repeal obsolete stamp duty laws and re-enact a simplified law to enhance the revenue for states.
“Under the new dispensation, the Tax Bills will usher in, and states will be entitled to the tax of Limited Liability Partnerships.
“When passed by the National Assembly, the Tax Bills will enable the state government to enjoy tax exemption on their bonds to be at par with federal government bonds.
Under the proposed tax reform, states will enjoy a more equitable model for VAT attribution and distribution that will lead to higher VAT income.
“Integrated tax administration will provide tax intelligence to states, strengthen capacity development and collaboration, and scope of Tax Appeal Tribunal to cover taxpayer disputes on state taxes.
“The proposed tax laws grant powers for the Accountant General of the Federation to deduct taxes unremitted by a government or MDA and pay to the beneficiary sub-national government on personal income tax of workers of federal institutions in states.
Also read: Tax bills no threat to your existence, FIRS assures NASENI, NITDA, TETFUND
Framework to grant autonomy for states internal revenue service and enhanced Joint Revenue Board to promote collaborative fiscal federalism.
“Legal framework for taxation of lottery and gaming and introduction of withholding tax for the benefit of states.”
The statement added, “From the aforementioned, it is clear that the Tax Bills are not in any way injurious to the states.
“Apart from streamlining the tax system in Nigeria and catalysing economic output, the tax and fiscal policy reforms provide incentives for states to become economic powerhouses.
“The challenge for governors will be to put on their thinking cap by investing in manpower and critical social and physical infrastructure in their states that will support businesses and socio-economic activities to flourish.”
This was after President Bola Tinubu on Tuesday, directed the National Assembly and the Ministry of Justice to work together to address the concerns raised on the bill.
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