Ten benefits of Tinubu’s Tax Reform Bills To 36 States as listed by the Presidency
The Presidency has explained the benefits of the contentious Tax Reform Bills to the 36 States of the Federation.
The proposed four legislations currently before the National Assembly for consideration and eventual passage into law, have sparked debate nationwide.
However, the Senior Special Assistant to President Bola Tinubu on New Media, Temitope Ajayi, provided an explanatory in a statement issued on Wednesday.
The development followed President Tinubu’s directive on Tuesday to the National Assembly and the Ministry of Justice to work together to address the concerns raised about the Bills.
“Human beings naturally resist change. When comfortable where we are, we find it extremely difficult to embrace an uncharted path or seek greater glory. Those who are risk averse often don’t want to venture out to embrace unfamiliar territories no matter how tempting the possible reward may appear. We should not, however, be so imprisoned by the fear of the unknown not to explore new possibilities because we find our present circumstances satisfying enough.
“Since the public debate around the Tax Reform Bills started, the strongest push back against it has come largely from the North. Borno State Governor, Professor Babagana Zulum has become the face of the resistance for the reasons he has pushed forward, even when some of them didn’t speak to the facts and provisions of the bills.
“If Governor Zulum and other voices of resistance who think the states will be shortchanged had actually taken time to examine the four executive Bills, they will see how progressive and transformative the Bills are. They will also discern the thought behind them which is primarily to make both the Federal and sub-nationals fiscally stronger and buoyant.
“In his public presentations and the most recent being the Channels TV Town Hall moderated by Seun Okinbaloye Monday evening, Chairman of Presidential Committee on Tax and Fiscal Policy Reforms, Taiwo Oyedele and other panelists again made convincing arguments for the passage of the Bills before the National Assembly,” Ajayi said.
Hereunder are 10 ways the Reform Tax Bills will benefit the 36 States of the Federation and enhance their capacity to earn more revenue, as listed by the presidential aide:
1. The federal government will allocate 5% of its current 15% share of VAT revenue to the states.
2. The Bills will direct income generated from the Electronic Money Transfer levy solely to the states as part of stamp duties.
3. The Bills aim to repeal outdated stamp duty laws and reintroduce a streamlined law to boost revenue for the states.
4. With the implementation of the new Tax Bills, states will gain entitlement to tax income from Limited Liability Partnerships.
5. Once approved by the National Assembly, the Tax Bills will allow state governments to benefit from tax exemptions on their bonds, aligning them with federal government bonds.
6. The proposed tax reform will establish a fairer model for the attribution and distribution of VAT, resulting in increased VAT revenue for states.
7. An integrated tax administration will offer tax insights to states, enhance capacity building and cooperation, and expand the Tax Appeal Tribunal’s jurisdiction to address taxpayer disputes concerning state taxes.
8. The new tax laws will empower the Accountant General of the Federation to withhold unremitted taxes from any government or MDA and remit them to the appropriate sub-national government for the personal income taxes of employees from federal institutions based in those states.
9. There will be a framework established to grant autonomy to state internal revenue services and bolster the Joint Revenue Board to foster collaborative fiscal federalism.
10. A legal framework will be established for the taxation of lotteries and gaming, along with the introduction of a withholding tax to benefit the 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 powerhouse
