President Bola Tinubu’s Aide outlines 10 ways The tax reform bill will benefit states
louis Buyisiwe
Dec 4, 2024
President Bola Tinubu’s Senior Special Assistant on Media and Publicity, Temitope Ajayi
President Bola Tinubu’s Senior Special Assistant on Media and Publicity, Temitope Ajayi, has outlined how the proposed Tax Reform Bills will benefit states financially.
Recently, President Tinubu directed the Ministry of Justice to collaborate with the National Assembly to address public concerns about the bills. The reforms include the Nigeria Tax Bill 2024, the Nigeria Tax Administration Bill, the Nigeria Revenue Service (Establishment) Bill, and the Joint Revenue Board (Establishment) Bill. These bills have faced resistance from state governors and stakeholders.
During a Channels Television Townhall on Tax Reforms, Taiwo Oyedele, Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, emphasized that the goal of the reforms is to improve the economy and create shared prosperity rather than just increase revenue.
“Our economy is underperforming,” Oyedele said. “Poverty is widespread, and growth is neither inclusive nor sustainable. The primary objective of these reforms is not to generate more revenue. It is to fix the economy for shared prosperity.”
However, some northern leaders, like Borno State Governor Prof. Babagana Zulum, oppose the bills. Zulum warned that the reforms could harm the northern economy, urging President Tinubu to reconsider. “This is not opposition,” Zulum explained. “This bill will destroy the North entirely. We call on President Tinubu to withdraw these tax bills.”
Despite this opposition, Ajayi shared “10 ways the Tax Bills will enrich states,” as follows:
Increased VAT Revenue: The Federal Government will give states an extra 5% share of Value-Added Tax revenue, raising their share to 10%.
Electronic Money Transfer Levy: States will gain exclusive income from this levy as part of stamp duties.
Simplified Stamp Duty Laws: Replacing outdated laws will boost states' revenue.
Tax on Limited Liability Partnerships: States will collect taxes from these partnerships.
Tax Exemptions on Bonds: State government bonds will get the same tax exemption as federal bonds.
Fairer VAT Distribution: A new model will ensure states receive a larger share of VAT income.
Integrated Tax Administration: This will improve states’ tax intelligence, capacity building, and the scope of the Tax Appeal Tribunal.
Remittance Enforcement: Federal workers’ unpaid taxes will be deducted and sent directly to the states.
Revenue Service Autonomy: States will have stronger internal revenue services and a collaborative Joint Revenue Board.
Lottery and Gaming Taxes: A legal framework for taxing lotteries and introducing withholding taxes will benefit states.
Ajayi argued that these reforms will streamline Nigeria’s tax system and give states the tools to grow economically. He encouraged governors to use the additional resources to develop infrastructure and support businesses.
“These reforms are not injurious to states,” he added. “They provide incentives for states to become economic powerhouses.”
