Reps move to clarify tax powers, end multiple taxation through constitutional amendment

By Gift ChapiOdekina, Abuja

The House of Representatives has begun deliberation connected a law amendment measure seeking to intelligibly specify the taxation powers of the Federal, State, and Local Governments, arsenic portion of efforts to destruct aggregate taxation and heighten fiscal transparency successful Nigeria.

The bill, titled “A Bill for an Act to Alter the Constitution of the Federal Republic of Nigeria, 1999 (as Altered), to Clarify the Taxation Powers of the Federal, State, and Local Governments; Define the Scope of Taxes and Levies Collectible by Each Tier of Government; Prevent Multiple Taxation and Unlawful Outsourcing of Revenue Collection; and for Related Matters (HB.2545)”, was sponsored by the Deputy Speaker of the House, Rt. Hon. Benjamin Okezie Kalu, alongside Hon. Chris Nkwonta, Hon. Tolani Shagaya, Hon. Daniel Asama Ago, Hon. Alex Egbona, Hon. Nkemkanma Kama, and Hon. Joshua Audu Gana.

Leading statement connected the wide principles of the bill, Rt. Hon. Kalu explained that the projected amendment seeks to “bring bid wherever disorder reigns, make clarity wherever overlaps persist, and guarantee that each naira raised, shared, oregon spent by authorities is traceable, lawful, and transparent.”

He observed that Nigeria’s fiscal operation has go “congested and conflicting,” with antithetic tiers of authorities imposing akin oregon overlapping taxes and levies connected the aforesaid taxpayers — a signifier that has resulted successful inefficiencies, disputes, and nonaccomplishment of nationalist spot successful the nation’s taxation system.

“The disputes implicit Value Added Tax (VAT), Stamp Duties, and Personal Income Tax are wide examples of however overlapping taxation powers person created hostility betwixt the Federal and State Governments,” Kalu noted.

He further expressed interest implicit the increasing inclination of outsourcing taxation postulation to backstage consultants, describing it arsenic an unlawful signifier that fuels corruption, harassment of citizens, and gross leakages.

To code these challenges, the measure proposes respective cardinal reforms, including:

Clarifying jurisdiction implicit Stamp Duties, stipulating that those connected firm transactions autumn nether the Federal Government, portion those connected idiosyncratic transactions are the work of State Governments.

Introducing VAT oregon Consumption Tax arsenic a chiseled point connected the Exclusive Legislative List, to supply law backing for azygous VAT medication nationwide.

Prohibiting the outsourcing of taxation postulation to backstage entities oregon consultants.

Capping the full fig of taxes and levies that tin beryllium imposed connected an individual’s income, consumption, oregon spot wrong a twelvemonth astatine nine.

Streamlining section authorities taxation to forestall undue harassment of traders, artisans, and tiny concern owners.

According to Kalu, the transition of the measure would assistance trim intergovernmental conflicts, fortify fiscal discipline, and beforehand amended coordination successful Nigeria’s gross postulation and budgeting systems.

“If this Bill is passed, it volition fortify fiscal discipline, amended fund predictability, and reconstruct nationalist assurance successful the taxation system,” helium said, urging his colleagues to enactment the measure for 2nd speechmaking and notation it to the Committee connected Constitution Review for further legislative consideration.

He added, “Through this amendment, we tin laic the law instauration for a fiscally disciplined, transparent, and businesslike Nigeria.”

The station Reps determination to clarify taxation powers, extremity aggregate taxation done law amendment appeared archetypal connected Vanguard News.