
The decision was made at the virtual meeting held on August
14 under the states’ fiscal transparency, accountability and sustainability
(SFTAS) programme for results, jointly organized by the World Bank and Nigeria
Governors Forum (NGF), in conjunction with the federal ministry of finance,
budget and national planning.
The virtual meeting was attended by 125 participants from
the 36 States of the Federation including State Commissioners of Finance and
Executive Chairpersons of State Internal Revenue Services.
In a statement signed by, NGF’s head, media and public
affairs, Abdulrazaque Bello-Barkindo, the tax relief programmes include:
extension of filing and payment dates; tax moratoriums; waivers or reduction of
penalties, and interests over the extension period.
Each states is, however, expected to meet some criteria
before it can receive the $2.5 million grant, one of which is the announcement
by the commissioner for finance or the executive chairperson of the state
internal revenue service, which will be published on state’s website and in
national dailies to ensure widespread awareness amongst taxpayers.
Also, tax officials and collecting agents will be issued
guidelines by the states for the implementation of the reliefs to ensure
consistent execution.
While some states are also offering rebates or discounts on
taxes paid within a specific period, others are allowing the payment of taxes,
fees and levies among others in instalments.
As part of the reform, States’ tax offices are now enabling
filing and the issuance of tax clearance certificates electronically (online).
At the subnational level, all the 36 State Governments are
currently experiencing a liquidity crisis of their own; and with limited
capacity to borrow, it has become imperative that they find a balance between
granting tax reliefs and maintaining revenues at a sustainable level.
“The 36 states of the federation are introducing tax relief
programmes to mitigate the unending toll of the COVID-19 pandemic on businesses
and individual taxpayers and ensure the speedy recovery of state economies,”
the statement read.
“State governments are themselves currently experiencing a
liquidity crisis of their own; and with limited capacity to borrow, it has
become imperative that they find a balance between granting tax reliefs and
maintaining revenues at a sustainable level.
“The extent to which government revenues will be impacted by
these reliefs will depend on the type of relief that they grant and their
ability to raise their tax efforts simultaneously, including offering
incentives for greater tax compliance.
“These efforts are being incentivised by a new Disbursement
Linked Indicator (DLI) under the Federal Ministry of Finance Budget and
National Planning (FMFBNP) World Bank $750 million States Fiscal Transparency,
Accountability and Sustainability (SFTAS) Programme for Results.
“Eligible States will be rewarded with USD2.5 million each
in performance-based grants if they announce by 31st July, 2020 and implement
by 30th September, 2020, a tax compliance relief programme for individual
taxpayers and businesses to mitigate the COVID-19 impact.”
(Today.ng)
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