1. The federal government will cede 5% out of its current 15% share of VAT revenue to states.
2. The Bills will transfer income from the Electronic Money Transfer levy exclusively to states as part of stamp duties.
3. The Bills seek to repeal obsolete stamp duties law and re-enactment of a simplified law to enhance the revenue for states.
5. When passed by the National Assembly, the Tax Bills will enable the state government to enjoy tax exemption on their bonds to be at par with federal government bonds.
Under the proposed tax reform, states will enjoy a more equitable model for VAT attribution and distribution that will lead to higher VAT income.
Integrated tax administration will provide tax intelligence to states, strengthen capacity development and collaboration, and scope of Tax Appeal Tribunal to cover taxpayer disputes on state taxes.
The proposed tax laws grant powers for Accountant General of the Federation to deduct taxes unremitted by a government or MDA and pay to the beneficiary sub-national government on personal income tax of workers of federal institutions in states.t
9. Framework to grant autonomy for states internal revenue service and enhanced Joint Revenue Board to promote collaborative fiscal federalism.
Legal framework for taxation of lottery and gaming and introduction of withholding tax for the benefit of states.