The advent of the Covid -19 pandemic has not only brought about unusual safety regulations as implemented by the authorities to keep the surging infection rate under control, but state governments in Nigeria are also taxing unusually to survive amidst current economic realities.
As desperate times call for desperate measures, state governments across the nation are gradually taking their eyes off the ever-decreasing federal allocation and looking inwards to boost internally generated revenue by introducing innovative taxations peculiar to its state potential.
Taxmobile.Online highlights 3 states across the nation that had to implement in recent times, one unusual tax or the other since the outbreak of the Covid-19 pandemic to shore-up the state’s resources.
Ekiti State Implements Mandatory Property Tax for Landlords, Landowners
If you are thinking of acquiring landed property in any of the 16 Local Government Areas of the southwestern state of Ekiti, then you should be warming up to pay the newly introduced ‘Property Tax’.
This policy became enacted in July 2020 with the Chairman of the Ekiti State Internal Revenue Service (IRS), Mr. Muyiwa Ogunmilade explaining that the new tax policy was part of efforts to shore up the state’s Internally General Revenues (IGR) for more infrastructural development.
He said that IRS has started aggressive enumeration of all buildings and landed property in over 130 towns in the state for hitch-free implementation of the tax policy.
Taxmobile.Online gathered that although the policy has been in existence in an extant law of 2013, no attention has been given to its implementation so far until now.
On tax implications, Ogunmilade expressed that the law would ensure that state revenue profile was boosted and fast track the capturing of more citizens in the tax net.
He also said that this would make the residents discharge their statutory obligations to the government for effective service delivery and provide a solid foundation for proper planning and development across the state.
Lagos Demands 5% Tax On ‘All Audio And Visual Contents’ From Content Producers
Lagos State as the commercial nerve of the country in August 2020 after close consultations with chieftains of Performing Musicians Employers Association (PMAN) and Lafrique Promedia is set to now tax up to 5% on all audio and visual contents from licensed content producers.
Taxmobile.Online gathered that this tax will be levied on all audio and visual content produced and sold within Lagos State.
The Board Executive Secretary of the Performing Musicians Employers Association (PMAN), Mr. Bamidele Balogun, gave the notice while warning content producers to before distributing audio and visual products to register their products through the board’s authorized agent within 30 days.
This exercise according to experts will, however, assist the Lagos State Government in policy formulation, concerning planning and funding for the sector.
Adamawa state is not left out of this IGR trend.
Livestock Farmers in Adamawa Will Now Pay Cattle Tax to State Government
To augment the N12.1 billion Internally Revenue projection for funding the 2021 budget, the Adamawa State Government in December 2020 has re-introduced payment of cattle-tax intending to improve livestock markets in the state.
This latest development was announced by Dr. Ishaya John, state Commissioner, Ministry of Finance, and Budget during the 2021 budget breakdown.
Recall that the state has earlier budgeted over N140 billion to finance its recurrent and capital development programmes within the 2021 fiscal year.
In his remark, John added
“The government will continue to ensure that some of the state’s untapped sources of IGR are harnessed and adequately tapped towards the improvement of revenue generation in the state within the 2021 fiscal year.
Whether on landed properties, creative contents, or even cattle, it is clear that state governments across the federation are leaving no stone unturned to revive the dwindling economic fortunes of their state by expanding the taxpaying net.