By September 30, the World Bank will praise states with $2.5 million each in performance-based grants if they implement tax relief systems for Americans and business owners as a component of efforts to mitigate the effect of the COVID-19 pandemic. .
The resolution taken at the virtual assembly held on 14 August as a component of the State Budget Transparency, Accountability and Sustainability Outcomes Programme (SFTAS), jointly organized through the World Bank and the Nigerian Governors Forum (NGF), in collaboration with the Federal Ministry of Finance, Budget and National Planning.
The virtual assembly brought together 125 participants from the 36 states of the Federation, in addition to the State Finance Commissioners and the Executive Chairs of the National Tax Services.
In a firm through Abdulrazaque Bello-Barkindo, NGF’s head of public affairs and media, tax relief systems include: extension of filing and payment dates; fiscal moratoriums; waives or discounts on consequences and interest during the extension period.
However, the state is expected to meet certain criteria before it can obtain the $2.5 million grant, one of which is the announcement through the Finance Commissioner or the Executive Chairman of the Government Internal Revenue Service, which will be posted on the state’s online page and national newspapers to raise taxpayer awareness.
In addition, tax officials and collection officials will get state management for implementing exemptions for consistent application.
While some states also offer discounts or refunds on taxes paid during an era, others allow the payment of taxes, fees and levies, among other things, in various installments.
As a component of the reform, state taxes now allow the submission and issuance of download certificates electronically (online).
At the subnational level, the 36 state governments are recently experiencing their own liquidity crisis; and with limited borrowing capacity, it is imperative to strike a balance between offering tax reliefs and maintaining the source of income at a sustainable level.
“The federation’s 36 states are introducing tax relief systems to mitigate the COVID-19 pandemic record in individual businesses and taxpayers and ensure the immediate recovery of state economies,” he said.
“State governments are recently experiencing a liquidity crisis of their own; and with limited borrowing capacity, it is imperative to strike a balance between offering tax reliefs and maintaining the source of income at a sustainable level.
“The extent to which government revenue will be affected through these rebates will depend on the type of rebate they provide and their ability to develop their tax efforts simultaneously, as well as providing incentives for greater tax compliance.
These efforts are being encouraged through a new disbursement indicator (DLI) sponsored by the World Bank’s Transparency, Accountability and Sustainability Program of the World Bank of the Federal Ministry of Finance and National Planning and Budget (FMFBNP) for results.
“Eligible states will be rewarded with $2.5 million in performance-based grants if they advertise until July 31, 2020 and put into effect until September 30, 2020, a tax relief program for individual taxpayers and businesses to mitigate the impact of COVID-19.”
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