The Chairman of Joint Tax Board (JTB), Muhammad Nami, said that the Federal Government will put an end to illegal taxes on raw food items and tomatoes. At the 153rd JTB meeting in Abuja, Mr. Nami addressed the theme: “Harmonisation and codification of taxes at national and sub national levels, key to achieving tax friendly environment in Nigeria”. He added that it is part of the plan to end taxation on non-taxable items as part of the reformation proposed by the Nigerian President, Bola Tinubu-led administration.
He stated that the informal sector highlighted that non-taxable services and goods do not need to be taxed. He added that there is an enumeration which ensures that people who trade in raw food items and goods like tomatoes skip taxes. In addition, merchants that are not earning N25 million are restricted from paying Value Added Tax (VAT) or Company Tax. The Executive Chairman of the Federal Inland Revenue Service (FIRS), Mr. Nami, stated that the Nigerian President, Bola Tinubu has decided to unify taxes and put an end to multiple taxation in Nigeria.
Raising of revenue generation and investment is encouraged.
Mr. Nami stated that Nigerians are lucky because from the beginning the new administration has showed interest in ending multiple taxation. The consequence is that the black taxes, informal taxes or any kind of taxes named by the local, state or federal government will be erased. This encourages raising of revenue generation and investment. Due to the irony of the clause “the more taxes the government have, the less revenue they generate”, the initiative has been prioritised and obligatory.
It was noted by the chairman that the harmonisation procedure would further decrease the amount of taxes and eliminate leakages, promoting the generation of revenue. Moreover, Mr. Nami stated that there would be provision of funds for the building of hospitals, schools, roads and protection of property and lives at all levels of government, immediately taxation ends. Officially, the spokesman said that the promise will not be an unfulfilled one because the constitution of a committee had been announced by the government.
Awareness theme: “what tax to pay and what tax not to pay”.
At the recent meeting held by the National Executive Council (NEC), the chairman stated that he was opportune to address and request for the governors’ support to eliminate the multiplicity of tax. He affirmed they are confident that there would be an immediate commencement of the work after the inauguration of the tax committee on August 8th by the President. Also, the unfulfilled promises made in the past will be corrected and fulfilled this time. Executive Secretary at JTB, Nana-Aisha Obomeghie affirmed that there would be enough sensitisation on the harmonisation process.
She said that the essentiality of the sensitisation was to create awareness to the public on the theme: “what tax to pay and what tax not to pay”, and it is intended to create awareness on when taxes should be paid. More so, it will aid seamless tax payment and promote functioning of businesses with a friendly tax environment. However, people pay different taxes — illegal and legal — but not all goes to the government; the federal government receives some but not all.
Local and state governments generate taxes more than FG.
Taiwo Oyedele, Chairman of Presidential Fiscal Policy and Tax Reforms Committee, said that up to nine forms of taxes are generated to the Federal Government. From his report, he highlighted that local governments and state governments generate taxes more than the Federal Government, which is quite frustrating to businesses. Mr. Oyedele stated that the harmonisation process would enable reduction of tax evasion, corruption, and many more. The meeting was also attended by the revenue collection officers from all 36 states and the FCT.