Nineteen State Houses of Assembly in Nigeria have passed the harmonized taxes and levies law, aligning state tax policies with federal guidelines. This move aims to reduce tax evasion and increase revenue collection across the country. The law introduces a unified framework for levies such as the Value Added Tax (VAT) and the Petroleum Product Pricing and Subsidy Adjustment (PPPASA) levy.
The adoption of the law was facilitated by a national working group that developed the model legislation. The law is expected to streamline tax administration and improve transparency in state financial systems. Officials emphasized that the new framework will help reduce discrepancies between state and federal tax policies.
The implementation of the law will require states to adjust their existing tax structures within a set timeframe. This process has already begun in several states, with others expected to follow in the coming months. The law is seen as a step toward greater fiscal accountability and economic stability in Nigeria.
