The National Economic Council (NEC) has called for a review of the proposed amendment to the Act on the harmonisation of taxes and levies across the federation, raising alarm over the dwindling excess crude account (ECA) occasioned by the drop in oil price.
At its 57th meeting which was chaired by Vice President Namadi Sambo, NEC directed that attorneys general from across the six geopolitical zones meet to review the proposed amendment to the Act on the harmonisation of taxes and levies across the federation.
In the face of falling oil prices, the Federal Government as part of the immediate steps to cushion the fall in oil revenue had proposed an increase in non-oil revenue in the country. It had consequently announced an aggressive tax administration in which private jets, yachts, champagne and a list of other luxury goods would be taxed.
Following the presentation of the brief by the Ministerial Implementation Committee (MIC) to NEC on the harmonisation of taxes and levies across the federation in August 2014, NEC had passed some resolutions and directed the MIC to carry out further activities and present an updated report to the council.
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One of the directives and resolutions given by the NEC is that six attorneys general representing the six geopolitical zones should be invited for a meeting to review the proposed amendment to the Act.
The following states’ attorneys general where therefore nominated by council for the assignment: Bayelsa for South South, Enugu for South East, Borno for the North East, Lagos for the South West, Kebbi for the North West, and Plateau for the North Central zones.
It further directed the Federal Ministry of Finance, Federal Inland Revenue Service, Joint Tax Board and the Office of the Attorney General of the Federation to commence the process of amending the VAT Act with emphasis on the review of the rate.
Council also considered and approved the attaché schedule containing the reviewed list of taxes and levies collectable by the three tiers of government for publication by the Joint Tax Board (JTB).
It also approved the need for the inspector general of police to enforce the directives for the dismantling of road blocks for revenue collection on the highways across the federation.
Briefing journalists after the meeting, Adejoke Orelope-Adefulire, the deputy governor of Lagos State, said the minister of finance, who was represented at the meeting by the minister of state for finanace, reported to council that the excess crude account currently stands at $4.1 billon.
