Proposed Tax Reform Ensures That No State Gets Less

How the Proposed Tax Reform Ensures That No State Gets Less than What They Are Presently Receiving

The proposed tax bill includes a mechanism to ensure that no state in the federation receives less than what they are currently getting under the existing arrangement.

Watch the short clip above to hear from Taiwo Oyedele himself, speaking on this matter.

**The new tax proposal suggests:**

1. Reducing the Federal Government's share from 15% to 10%

2. Increasing the State Governments' share from 50% to 55%

3. Keeping the Local Governments' share at 35%

The reduction in the Federal Government's share from 15% to 10% is intended to create a buffer. 

This 5% buffer will be used to ensure that no state receives less than what they have been receiving under the old formula. 

The 5% acts as a precaution to level up any discrepancies caused by the new tax arrangement.

**Benefits of the Proposed Tax Reform**

PBAT's IGR template helped Lagos increase its IGR by 7400% as of 2021. 

But this tested-working template has been further improved with the ingenuity of tax expert Taiwo Oyedele. 

Implementing this improved template nationwide could significantly increase revenue due to innovations such as:

• Introduction of an automated digital system for VAT collection.

• Centralization of revenue collection for all tiers of government and MDAs, including customs duties. This ensure efficient collection, eliminated leakages and ease tracking.

Recommendations & Conclusion

Let support the new tax reform for liberation from the oil dependent nations to economic prosperity with or without oil.