Communiqué Issued at the end of the 120th Meeting of the Joint Tax Board Held from 1st to 4th of March 2009 At Giginya Hotel, Sokoto, Sokoto State.

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The Joint Tax Board held its 120th meeting at Giginya Hotel, Sokoto from 1st to 4th of March 2009. The Board extensively considered various issues and reached the following major decisions.
 
1.    THE EFFECTS OF THE GLOBAL ECONOMIC MELTDOWN
The Board noted the negative impact of the global economic meltdown on the world crude oil price/production and the attendant low level of receipt by the three tiers of Government from the Federation accounts. The Board therefore restated that it has become imperative for Government at each level to be more aggressive in non-oil revenue generation to substantially augment the shortfall.
 
2.    UNIFORM APPLICATION OF TAX RATES
The Board re-emphasized the urgent need for states to correctly and uniformly apply the provisions of the Personal Income Tax Act (PITA) across board. It therefore solicits for the support of the Government at all levels in implementing the correct Personal Income Tax computation.
 
3.    EARNED INCOME
The Board resolved that the definition of “Earned Income” be adopted strictly as provided in the First Schedule of the Personal Income Tax Act, cap P8 LFN 2004 and read together with the provision of Section 3 of the same Act. 

4.     UNIQUE TAXPAYER IDENTIFICATION NUMBER
 
The Board re-emphasized the need for the states to adopt the Unique Taxpayer Identification Number (U-TIN) rollout programme for proper identification of taxpayers. 
 
5.    e-PAYMENT
The Board welcomed the current e-payment policy of the Federal Government and implores States and Local Governments to adopt the same policy to enhance quality of governance and support improved tax payment compliance. It also noted the need for all e-payment solutions to be tax compliant and that tax payments are to be remitted at the same time as other payments real time. 
 
6.    MODERNIZATION OF REVENUE BOARDS
The Board noted the need for Revenue Boards to be modernized to meet the dictates of the changing environment. It re-emphasized the need for State Governments to grant full financial and administrative autonomy to their Boards of Internal Revenue Service, fund the Boards on the basis of cost of collection in line with the best practice, automate the tax and administrative operations of the Board, and ensure professional and appropriate staffing in line with the provisions of the Personal Income Tax Act.  
 
7.    OVER SIGHT FUNCTIONS
The Board reiterated that all State Board of Internal Revenue should provide oversight function in all revenue collecting Ministries, Department/Agencies in their states. It also noted the need for the FIRS to discharge this responsibility with regard to Federal Ministries, Departments and Agencies as provided in the Federal Inland Revenue Service (Establishment) Act 2007. 
 
8.    INTERNATIONAL TAX CONFERENCE
The Board resolved that the International Tax Conference shall be held every two years with the next one coming up in the year 2010

Year of Meeting: 
Tuesday, September 15, 2009