World Bank: Nigerian States To Offer Tax Relief To Businesses, Taxpayers

Businesses and taxpayers will get tax relief across Nigeria following an agreement among state governments and their State Internal Revenue Services. The state governors initiated the tax relief programmes to assist businesses withstand the economic implications of COVID-19 pandemic.

The state governments will collaborate with the State Internal Revenue Services to implement the tax incentives, a communique signed by the Chairman of the Nigerian Governors Forum (NGF), Kayode Fayemi, disclosed.

The agreement was disclosed at the end of the 16th teleconference meeting of the forum, “All State governments through their Internal Revenue Services will ensure the seamless implementation of tax relief programmes for businesses and taxpayers.

"These programmes which were released in some States since March 2020 are designed to reduce the financial burden of taxpayers in the country up till 2021 in some cases.“ The communique made public by the Head, Media and Public Affairs of the NGF, Abdulrazaque Bello-Barkindo, on Thursday, stated.

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Why Are States Initiating Tax Relief?

States in Nigeria will receive $2.5 million each from the world Bank depending on their tax incentive performance. The fund was tied to encourage states to provide needed tax relief to cushion the economic downturn on households and businesses within each state in Nigeria.

The implementation of tax relief by each state government until September 30, 2020, will determine if the World Bank will disburse the fund. AllNews gathered that part of the tax relief expected to be implemented includes; extension of filing and payment dates; tax moratoriums; waivers or reduction of penalties, and interests over the extension period.

The performance-based fund was agreed upon on August 14, during a virtual meeting organised by the World Bank and Nigeria Governors Forum, alongside the federal ministry of finance, budget and national planning. The discussion was centred on the States’ Fiscal Transparency, Accountability and Sustainability (SFTAS) Programme.