New Tax Laws: Nine States Lead Domestication Drive

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Nine Nigerian states have taken the lead in domesticating the newly introduced tax laws designed to end multiple taxation, illegal levies and uncoordinated tax collection across the country.

The states are Bayelsa, Anambra, Ekiti, Gombe, Kogi, Nasarawa, Plateau, Kwara and Zamfara, while the remaining 27 states are expected to adopt the framework in the coming months.

The domestication of the tax laws is in line with the Federal Government’s ongoing fiscal reforms aimed at harmonising taxes at state and local government levels, improving transparency, and creating a more business-friendly environment. The reforms are also intended to curb the activities of unauthorised tax collectors and protect taxpayers, particularly small businesses and low-income earners.

In Kogi State, the government has signed the domesticated tax laws into effect, introducing exemptions for low-income earners, strengthening digital tax administration and improving revenue accountability. The state government said the reforms would enhance internally generated revenue while reducing the burden on citizens.

Bayelsa State also described its adoption of the new tax regime as a major step towards modernising revenue collection, noting that the law reduces the number of approved taxes and levies, discourages cash payments and eliminates roadblocks used for tax enforcement.

Officials involved in the reform process say the early adoption by the nine states reflects growing commitment to fiscal discipline, improved tax compliance and investor confidence. They expressed optimism that other states will soon follow, paving the way for a more coordinated and predictable tax system nationwide.