Multiple taxation: States urged to harmonise tax law

From Juliana Taiwo-Obalonye and Isaac Anumihe, Abuja

The National Economic Council (NEC) has recommended that states should enact harmonised tax laws to address multiple taxation.

The council made the recommendation at the end of its two-day conference in Abuja.

According to the communiqué, the council commended the 12 states that have passed harmonised tax laws and encouraged the two states that already have such laws before their state assemblies. It also urged states that are yet to conclude the process to accelerate the passage of the new law.

Governments at all levels are also to prioritise spending on human capital development, infrastructure, and improved accountability to strengthen global trust.

The amendment of the constitution, it stated, is needed to remove certain inconsistencies in implementation, adding that federalism should be expedited to enable an effective tax regime at the federal and subnational levels of government.

NEC noted the need to restructure and realign economic policies to promote inclusivity, equity, and social cohesion, with deliberate emphasis on improving living standards and strengthening outcomes. State governments should increase per capita spending on health, education, and youth employment to improve human capital outcomes and expand opportunities for economic participation.

“Nigeria’s persistent investment in education and health sectors needs to be lifted, particularly when compared with peer countries. There is an urgent need to ramp up investment in the social sectors – education and health, including nutrition,” it said.

On security, it stressed the need to tackle multiple security challenges by strengthening inter-agency cooperation and collaboration. State governments, it recommended, are advised to adhere to the national security framework in line with the Renewed Hope Agenda and the priority areas of government. Government is to employ non-kinetic approaches to address unemployment and poverty, as this would help curb insecurity in the country.

Speaking on domestic production and partnership frameworks for economic growth, the council focused on the imperative of stimulating sustainable domestic production.

It noted the need to expand concessional financing for the productive sectors, secure production corridors and scale infrastructure delivery, as well as strengthen federal–state coordination for domestic production.

It also emphasised the need for recalibration mechanisms to enable the economy respond to external shocks.

“Council will also implement measures to support domestic production in order to make the Nigerian economy more productive, competitive, and export-focused by incentivising subnational entities to prioritise investment planning,” it said, noting that the country’s federalism is unique, with the constitution vesting power in local government areas, states, and the federal government – sometimes exclusively and sometimes jointly – to achieve fundamental objectives.