Presidency Lists 10 Ways Tax Reform Bills Will Make States Richer
- Presidential aide, Temitope Ajayi, has told state governors how to make their states richer with the tax reform bills
- The Senior Special Assistant to the President on Media and Publicity said Bills will serve the states better and enhance their capacity to earn more revenue
- Ajayi listed the ten ways the 36 states of the federation will make more money and become more richer with tax reform bills
Legit.ng journalist Adekunle Dada has over 7 years of experience covering metro, government policy, and international events
FCT, Abuja - The Presidency has listed 10 ways the controversial Tax Bills will serve the states better and enhance their capacity to earn more revenue.
The Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, said that the Tax Bills are not in any way injurious to the state.
Source: Facebook
Ajayi explained that the tax and fiscal policy reforms provide incentives for states to become economic powerhouses.
The presidential aide mentioned the 10 ways while reacting to the massive outcry from the north about the bills.
He made this known via his X handle (formerly known as Twitter) @TheTope_Ajayi on Wednesday, December 4.
10 Ways tax bills Will make states richer
1. The federal government will cede 5% out of its current 15% share of VAT revenue to states.
2. The Bills will transfer income from the Electronic Money Transfer levy exclusively to states as part of stamp duties.
3. The Bills seek to repeal obsolete stamp duties law and re-enactment a simplified law to enhance the revenue for states.
4. Under the new dispensation the Tax Bills will usher in, and states will be entitled to the tax of Limited Liability Partnerships.
5. 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.
6. Under the proposed tax reform, states will enjoy a more equitable model for VAT attribution and distribution that will lead to higher VAT income.
7. Integrated tax administration will provide tax intelligence to states, strengthen capacity development and collaboration, and scope of the Tax Appeal Tribunal to cover taxpayer disputes on state taxes.
8. 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.
9. Framework to grant autonomy for states' internal revenue service and enhanced Joint Revenue Board to promote collaborative fiscal federalism.
10. Legal framework for taxation of lottery and gaming and introduction of withholding tax for the benefit of states.
Why governors wanted tax reform bills withdrawn
Meanwhile, Legit.ng reported that Governor Abdullahi Sule explained why state governors wanted the tax reform bills withdrawn from the National Assembly.
The Nasarawa state governor said he and his colleagues only wanted some clarifications on the proposed bills.
He explained that it is not true that the 36 state governors of the federation are against the tax reform bills.
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Source: Legit.ng
