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Published On: Fri, Nov 21st, 2014

Austerity: FG to introduce new tax regime

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NEC_MeetingBy Lawrence Olaoye

As a measure to cushion the effect of the ongoing slide in the price of crude oil in the international market, the Federal Government has perfected the plans to shore up its revenues by increasing taxes and other internally generated revenues (IGR) in the country.

This was made known yesterday when the Deputy Governor of Lagos state, Victoria Adejoke Orelope-Adefulire, briefed State House Correspondents after the meeting of the National Economic Council (NEC) held at the Presidential Villa yesterday.

The 57th NEC was chaired by the Vice President, Arc, Namadi Sambo.

The NEC called for a review of the proposed amendment to the Act on the harmonisation of taxes and levies across the federation as announced by  Minister of Finance, Dr. Ngozi Okonjo-Iweala.

To this effect, there would be aggressive tax administration in which private jets, yachts, Champagne and a list of other luxury goods would be taxed.

She also indicated the possibility of a review of the Value Added Tax (VAT).

“One of the directives and resolutions given by the NEC is that six (6) Attorney Generals representing the six (6) geo-political zones should be invited for a meeting to review the proposed amendment to the Act.

“The following States Attorney-Generals were therefore nominated by Council for the assignment; Bayelsa for South-South, Enugu for South–East, Borno for the North-East, Lagos for the South-West, Kebbi for the North- West, and Plateau for the North –Central zones.

It further directed the Federal Ministry of Finance, Federal Inland Revenue Service, Joint Tax Board and the Office of the Attorney General of the Federation to commence the process of amending the VAT Act with emphasis on the review of the rate,” she stated.

“Council also considered and approved the attaché schedule containing the reviewed list of taxes and levies collectable by the three (3) tiers of government for publication by the Joint Tax Board (JTB).

It also approved the need for the Inspector General of police to enforce the directives for the dismantling of road blocks for revenue collection on the highways across the Federation,” she added.

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