FEDERAL EXECUTIVE COUNCIL (FEC) APPROVES THE HARMONISATION OF TAXES & LEVIES ACROSS THE FEDERATION

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The Federal Executive Council has approved the harmonization of taxes and levies across the Federation.
The  approval was given at the Council’s meeting on Wednesday, the 13th day of May, 2015 at the Presidential Villa, Abuja after due concurrence of the initial approval of the Ministerial Implementation Committee on the harmonization of taxes and levies across the federation by the National Economic Council (NEC).
It should be recalled that a Ministerial Implementation Committee (MIC) chaired by the Coordinating Minister of the Economy and Minister of Finance, Ngozi Okonjo-Iweala,  was on 21st October, 2013 set up by the National Economic Council to review the report of an ad-hoc committee set up to look into and make proper recommendations on the grievances and complaints on multiplicity of taxes and levies by various enterprises, investors, traders and particularly the agitations contained in the presentation made by the Manufactures Association of Nigeria (MAN) at the 1st 2013 meeting of the NEC held on 29th January, 2013.
The terms of the Ministerial Committee include, among others, taking steps to amend the Taxes and Levies (Approved List for Collection) Act, Cap. T2, L.F.N., 2004.
Part of the deliberations and decisions of the MIC in achieving the objectives were the immediate need/action towards resolving issues concerning road blocks and revenue collection on the highway, the need to review the provisions of Taxes and Levies (Approved List for Collection) which were thought to be obsolete and the request to all State Boards of Internal Revenue to submit all taxes and levies administered in the states with supporting legislative documents to back the imposition of such taxes or levies.
Major highlights of the approved documents include: delisting of all taxes and levies that were not backed by any law, dismantling of road blocks mounted on the highways for the purpose of revenue collection, banning the sale of stickers and emblems to motorists, review the provisions of the Taxes and Levies (Approved List for Collection) Act to reflect peculiarities in the states across the federation.
In an interview with the Chairman Joint Tax Board (JTB) represented by the Secretary of the Board, Mr. M.L. Abubakar, JTB said the approval would go a long way in addressing issues and challenges faced by the Nigeria tax system and administration.
He particularly pointed out that incessant abuse and hardship faced by motorists in the guise of tax/revenue collection would be a thing of the past.
Various tiers of government, according to him, would have a clear view of which type of taxes or levies are collectible by them thereby checking multiplicity of taxes.
Details of the approved document would soon be publicized by the JTB.