Nineteen states have domesticated the Model Taxes and Levies Act as the Federal Government moves to harmonise tax administration nationwide and reduce the number of tax and levy heads to nine. The reform is expected to curb multiple and overlapping collections, eliminate illegal tax collection practices and reduce compliance costs for businesses and traders operating across states.
Olusegun Philip Adesokan, Executive Secretary of the Joint Revenue Board (JRB), disclosed this on Wednesday at the 160th meeting of the board in Kaduna, where stakeholders assessed one year of tax reforms under the theme, “One Year of Tax Reform: Assessing Progress and Addressing Challenges.” Adesokan said the Model Taxes and Levies Act, when domesticated by all 36 states, would establish common principles for taxation and levy administration across the country.
“By the time we accomplish the entire 36 states, we will have a Taxes and Levies Law containing the same principles and provisions, and implementation will commence across the board,” he said. He said the new framework prohibits cash collection of taxes and levies, as well as the erection of roadblocks along transport corridors for the purpose of collecting taxes, levies and rates.
The measures, he said, are designed to tackle multiple collections and other practices that increase the cost of doing business and undermine the credibility of the tax system. Adesokan also disclosed that all states had adopted the Personal Income Tax Guidelines issued by the Federal Government, while uniform Presumptive Tax Regulations had been introduced for operators in the informal sector.
The regulations, he said, would provide a common basis for taxing informal-sector businesses while incorporating reliefs for eligible taxpayers. He said the reforms were in line with President Bola Tinubu’s tax policy of taxing prosperity rather than poverty and profits rather than capital, insisting that the objective was not