•Government considers tax amnesty programme

Twelve states have so far adopted tax reform and harmonised the new acts with their laws.

Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, disclosed this at a presentation at the National Economic Council Conference in Abuja.

This comes even as the conference called on governments at all levels to prioritise spending on human capital development and infrastructure while improving accountability to strengthen trust.

Oyedele said that besides the 12 states, 13 states have the bills in their houses of assembly, while 11 states are in the final stages of presenting the bills.

He said it was important for the states to adopt and harmonise the new tax laws with their state tax laws to avoid multiple taxation. He advised state governors to grant their internal revenue agencies autonomy.

“Let us stop using consultants to collect taxes. It undermines our ability to do what is right. The new tax law says you cannot use consultants to do the routine work of the tax authority and its autonomy must be guaranteed,” he said.

He also disclosed a plan by the government to adopt a tax amnesty programme.

Addressing members of the NEC, which comprised all the state governors and chaired by the Vice President, directly, Oyedele said: “As part of this reform, there is a plan for a voluntary disclosure programme, in other words, people admit that they have not been paying their taxes diligently over the years, and they don’t have the money to pay off immediately.

“If we do not clean the past, we are not sure we will get the money going forward. So, we need your help to adopt a tax amnesty programme that we are designing that will help people to come clean with their past tax compliance.”

In a communiqué issued at the end of the conference, the Council emphasised the need to restructure and realign economic policies to promote inclusivity, equity and social cohesion, with deliberate emphasis on improving living standards and strengthening outcomes in human capital development (HCD).

It urged state governments to increase per capita spending on health, education and youth employment to improve human capital outcomes and expand opportunities for economic participation.

According to the communiqués, Nigeria’s persistent underinvestment in the education and health sectors needs to be addressed, particularly when compared with other countries.

It said there was an urgent need to ramp up investment in the social sectors, education and health, including nutrition.

The NEC also agreed that it would implement measures to support domestic production to make the Nigerian economy more productive, competitive and export-focused by incentivising subnational entities to prioritise investment planning.

It noted that the country’s federalism was unique, with the constitution vesting power in local government areas, states and the federal government – sometimes exclusively and sometimes jointly – to achieve fundamental objectives.

The communiqué also called on the federal and state governments to foster strong partnerships with the private sector, civil society and development partners to achieve inclusive and sustainable national development. (The Guardian)