Tax Relief: FG, World Bank Set Aside $2.5 Million Grant For States

Tax Relief: FG, World Bank Set Aside $2.5 Million Grant For States

By Wires Editor | The Trent on August 16, 2020
Udoma Udoma, President Muhammadu Buhari, Lukman Otunuga, Eze Onyekpere

The Federal Government, through the Federal Ministry of Finance, Budget and National Planning, FMFBNP, and the World Bank have set aside $2.5million grant for each state able to commence implementation of a tax compliance relief programme for individual taxpayers and businesses by September 31.

The incentive is to stimulate the success of the various tax relief programmes being introduced by state governments as part of measures to mitigate the unending toll of the coronavirus pandemic on businesses and ensure speedy recovery of states’ economies.

Abdulrazaque Bello-Bakrindo, the spokesman of the Nigeria Governors’ Forum, NGF, made this public in a statement on Sunday, August 16, 2020.

Bello-Bakrindo said the initiative formed part of the outcome of a virtual meeting on August 14, 2020, under the States’ Fiscal Transparency, Accountability, and Sustainability, SFTAS, Programme for Results, organised by the World Bank and the Nigeria Governors’ Forum, NGF, midwifed by the FMFBNP.

He identified the various tax reliefs measure so far announced by states and said the “efforts are being incentivised by a new Disbursement Linked Indicator, DLI, under the FMFBNP – World Bank $750 million  States Fiscal Transparency, Accountability and Sustainability, SFTAS, Programme for Results.

“Eligible states will be rewarded with $2.5 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.”

‎Bello-Barkindo added: “However, there are criteria to be met if a state is to receive the $2.5 million.

“These are that, state announcements should be signed by the Commissioner of Finance or the Executive Chairman of the State Internal Revenue Service, and published on state websites and in national dailies to ensure widespread awareness amongst taxpayers.

“Furthermore, the state government should issue to their tax officials and collecting agents, guidelines for the implementation of the reliefs to ensure consistent execution by all, and sundry.”

He said the virtual meeting was attended by 125 participants from the 36 states, among whom were Commissioners of Finance and Executive Chairpersons of states’ Internal Revenue Services.

Bello-Barkindo noted states are already introducing various forms of tax relief, which include extension of filing and payment dates, tax moratoriums, waivers or reduction of penalties and interests over the extension period.

He said some states are also offering rebate or discounts on taxes paid within a specific period, while others are allowing the payment of taxes, fees, and levies among others in instalment.

Bello-Barkndo further noted states’ tax offices are enabling filing and the issuance of tax clearance certificates electronically (online).

Bello-Barkindo quoted the Programme Manager, NGF’s SFTAS Technical Assistance Project, Olanrewaju Ajogbasile as telling participants that the NGF’s Secretariat, “through the support of the FMFBNP and the World Bank, was available to provide technical advisory on the domestication of necessary reforms to meet the DLIs and more broadly, fiscal sustainability.

“Olanrewaju Ajogbasile also disclosed that while some States have followed strictly the requirements of granting extension for filing 2019 annual returns and waiver for penalties and interests for businesses and individual taxpayers, others have gone further to waive other taxes, fees, and levies for a specified period of time.”

Source: The Nation


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