Twenty-one states across Nigeria have enacted the Model Harmonised Taxes and Levies Law to tackle multiple taxation, curb illegal revenue collection and streamline tax administration.
The Executive Secretary of the Joint Revenue Board (JRB), Olusegun Adesokan, disclosed this on Wednesday during a press briefing at the board’s headquarters in Abuja.
Adesokan said the new legislation consolidates more than 100 existing taxes and levies into nine categories to simplify tax administration and reduce the burden on businesses and individuals.
He said 20 states had passed the law as of Tuesday, but the number increased to 21 later in the day.
According to a presentation at the briefing, the states are Kebbi, Kaduna, Zamfara, Ekiti, Enugu, Abia, Anambra, Gombe, Adamawa, Yobe, Borno, Niger, Plateau, Benue, Kogi, Kwara, Nasarawa, Akwa Ibom, Bayelsa, Delta and Ondo.
The development leaves 15 states yet to adopt the legislation, although the board expressed optimism that more states would complete the process in the coming months.
According to him, user charges cover services such as parking, signage, street naming, waste disposal and certain registration fees, while daily tickets include market levies, abattoir fees and transport-related charges.
The executive secretary added that the National Economic Council had included subnational tax harmonisation among the priorities of its 90-day economic action plan.
On the states yet to adopt the law, Adesokan explained that passage required legislative procedures and consultations with relevant stakeholders rather than executive directives.
Adesokan maintained that informal-sector traders covered by the income tax exemption should not be subjected to income tax demands, although other lawful levies and charges could still apply.
To reduce disruptions to businesses, the board plans to introduce joint tax audits involving the Nigerian Revenue Service and state revenue authorities, thereby limiting repeated inspections.
Responding to complaints about questionable revenue notices, Adesokan urged taxpayers to verify payment demands with the appropriate revenue authorities and avoid paying money into private accounts or those belonging to consultants.
He clarified that the Joint Revenue Board coordinates tax policy and administration but does not directly collect revenue, a responsibility that rests with federal and subnational tax authorities.
Adesokan said the ultimate success of the reforms would be measured by their impact on economic activities rather than simply by the number of taxes consolidated.
