joshua
Kogi Holds citizens engagement, interactive session on Tax Reform Bills.
… urged that the tax reforms must be in the best interest of the State.
The Kogi State Commissioner For Finance, Budget and Economic Planning as well as other stakeholders have accepted the review of the ongoing tax bills, but urged that the tax reforms must be in the best interest of the State.
This summation was the views of the stakeholders and the general public at a one-day citizen engagement and interactive session on the Tax Reform Bills currently ongoing at the National Assembly.
The interaction was to enable the State collate the views of the people towards the reform bills due for public hearing at the National Assembly, with the views to finding ways of benefiting the State.
The interaction was organized by the Kogi State Ministry of Finance, Budget and Economic Planning on sensitizing the citizens and getting their views on the Tax Reform Bills.
In his remarks, the Kogi State Commissioner For Finance, Asiwaju Asiru Idris said the 32 year development plan of the State is aimed at funding budget and development, reason why resources available to the State he added must be harnessed for the good of the State.
The Finance Commissioner thanked President Ahmed Bola Tinubu for the tax reform bills, said the State is studying the bills and looking at ways that it be beneficial to the people.
He assured that while the tax reform bills is a welcome development, urged the people to look critically into the bills and see how it will work and be beneficial to the growth and development of the State.
According to the Commissioner, “by the location of Kogi State, linking the North and South, we need to look at the advantages of how the State will optimize it location”, urged the Representatives of the State at the National Assembly to key into the discussions with the view to ensuring that the State reaps the benefit.
In a paper presentation on the various tax bills currently with the National Assembly, the Executive Chairman, Kogi State Internal Revenue Service (KGIRS), ALHAJI SULE SALIHU ENEHE, said the Nigerian government has introduced four tax reform bills aimed at revolutionising the country’s tax system.
The bills he disclosed are the: Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service Establishment Bill, and Joint Revenue Board Establishment Bill.
The primary objectives of the bills he disclosed are to simplify and streamline tax administration, Reduce the burden on low-income earners, and eliminate the incidence of double taxations.
The bills the Executive Chairman added are also aimed to promote economic growth, increase revenue generation, and create a more competitive business environment.
The provisions of the Nigeria Tax Bill 2024
Alhaji Enehe said proposes a reduction in Company Income Tax from 30% to 27.5% in 2025 and 25% in 2026.
He said It also introduces a 4% Development Levy to harmonise the multiplicity of tax and levies paid by companies.
On the Nigeria Tax Administration Bill, the Chairman said the bill proposes a review of the sharing formula of the Value Added Tax (VAT) accrued to the Federation, recommends a reduction of VAT distributable to the Federal Government from 15% to 10% and an increase in the share of State Governments from 50% to 55%.
On the Nigeria Revenue Service Establishment Bill, he said it seeks to establish the Nigeria Revenue Service as a centralised agency responsible for tax administration and revenue collection.
He added that the Joint Revenue Board Establishment Bill proposes the establishment of a Joint Revenue Board to oversee the administration of tax and revenues across the three tiers of government.
The benefits of the tax reform bills he explained is expected to have a positive impact on Nigeria’s economy through Increase in revenue generation through the introduction of Development Levy and the harmonization of tax and levies.
He added that it will also reduce burden on low-income earners which is expected to increase their purchasing power and reduce poverty.
He further added that it will improve business environment by reducing the multiplicity of tax and levies paid by companies.
Various speakers made up of the Civil Servants, Traditional rulers, captains of industries amongst other critical stakeholders lauded the ongoing tax reforms, but pointed out areas that the State should focus upon for it to reap abundant benefits after the reforms.
The views from the interaction is to be collated, presented to the State Government for deliberation before finally presented as a position paper of the Kogi State Government on the tax reform bills.
