10 Ways New Tax Bills Will Help States Make More Money

People often don’t like change, especially when they are comfortable with how things are. But avoiding new opportunities because of fear can hold us back. 

Right now, in Nigeria, there’s a lot of talk about new Tax Reform Bills. Some people, especially in the north, like Governor Babagana Zulum of Borno State, don’t agree with these changes. They think the changes won’t be good for the states, but they might not have looked closely at what these bills could do.

At a recent discussion on TV, experts explained why these bills are good. They said the bills would help both the national government and the states by making them financially stronger.

Here are 10 ways these Tax Bills could help states earn more money:

Sharing VAT Revenue: The national government wants to give 5% of its VAT revenue to the states.

Money from Electronic Transfers: All the money collected from electronic money transfers will go to the states.

Changing Stamp Duties Law: The new bills will update the old stamp duties laws to help states earn more money.

Taxing Partnerships: States will be able to tax certain types of business partnerships.

Exemptions for State Bonds: States will not have to pay taxes on the money they borrow through bonds, just like the national government.

Fair Sharing of VAT: The new system will make sure VAT money is shared more fairly among the states.

Better Tax Management: There will be a new system to help states manage their taxes better, including tools to handle disputes about taxes.

Taking Taxes Directly: If a federal institution doesn’t pay its taxes, the National Accountant General can take the taxes owed and give them directly to the states.

More Control for State Tax Services: The bills will give state tax services more power and help them work better with the national tax board.

Taxing Lottery and Gaming: States will get to collect taxes from lotteries and gaming, which includes some extra taxes from these activities.