Legit.ng journalist Adekunle Dada has over 7 years of experience covering the metro, government politics and international events.

FCT, Abuja – The presidency listed 10 ways the controversial tax bills will better serve states and improve their ability to raise more revenue.

Senior Special Assistant to the President on Media and Publicity, Temitope Ajayi, said the tax bills are in no way detrimental to the state.

Ajayi explained that tax and tax reforms incentivize states to become economic powerhouses.

The presidential aide mentioned the 10 ways while reacting to the massive outcry from the north over the bills.

He made this known via his handle X (formerly known as Twitter) @TheTope_Ajayi on Wednesday, December 4.

10 Ways Tax Bills Will Make States Richer

1. The federal government will hand over 5% of its current 15% share of VAT revenue to the states.

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2. Bills transfer revenues from the transfer of electronic money are collected exclusively from the States within the framework of stamp duties.

3. The bills seek to repeal the obsolete Stamp Duty Act and restore a simplified law to increase state revenue.

4. Under the new dispensation, tax bills will come into effect and states will be entitled to limited liability company tax.

5. Once passed by the National Assembly, the tax bills will enable the state government to enjoy tax exemption on its obligations on par with federal government obligations.

6. Under the proposed tax reform, states will benefit from a fairer model of VAT allocation and distribution, leading to an increase in VAT revenue.

7. The Integrated Tax Administration will provide tax intelligence to states, strengthen capacity development and collaboration, and expand the reach of the Tax Appellate Tribunal to cover taxpayer disputes regarding state taxes.

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8. The proposed tax laws empower the Accountant General of the Federation to deduct unremitted taxes from a government or MDA and pay to the beneficiary subnational government the personal income tax of workers of state federal institutions .

9. Framework for granting autonomy to internal state revenue departments and strengthening the Joint Revenue Board to promote collaborative fiscal federalism.

10. Legal framework for the taxation of lotteries and games and introduction of withholding tax for the benefit of States.

Why governors wanted tax reform bills withdrawn

In the meantime, Legitime.ng reported that the governor Abdullahi Sule explained why state governors wanted the tax reform projects to be withdrawn from the National Assembly.

THE Nasarawa State The governor said he and his colleagues only wanted some clarification on the proposed bills.

He explained that it is not true that all 36 state governors of the federation are against the tax reform plans.

Source: Legit.ng