House of Federation to Lead Tax Distribution

June 12 , 2021

A proclamation drafted by the House of Federation and approved by parliament last week has concluded that an office under the former is to oversee the government's activities in the distribution of concurrent taxes and subsidies. The proclamation, which has been in the making for over a year, initially planned to establish a federal subsidy and shared revenues commission that would in charge of concurrent tax and subsidy distribution. As stated in the Constitution, the federal and regional state governments are permitted to concurrently levy and collect taxes from enterprises they own jointly. This applies to personal income taxes on employees working in these same enterprises among others. Despite this, there has not been a legal framework that clearly defines how the process is to be carried out. The proclamation thus aims to bring about a transparent and fair distribution system.


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