The federal government on Thursday, August 8, expressed its resolve to apply sanction on states engaging in double taxation in the country.
This was contained in a statement issued by the Minister of Finance, Budget and National Planning, Zainab Ahmed.
According to Ahmed, the federal government has issued a mandate regarding deductions of money from the source.
Also the Minister of Information and Culture, Lai Mohammed said the Minister of Mines and Steel Development, Adegbite Olamilekan, told the council that insecurity had hampered the sector; while investors are leaving the country because of double taxation.
The information minister said: “The Honorable Minister of Mines and Steel Development presented a memo today; which largely was to ask for council’s approval to address the major challenges the mining industry is facing. Among the challenges the industry is facing according to the Minister is that of insecurity in certain parts of the country.
“Notably, in the North-Western part of the country, mining has been suspended because of the activities of bandits and kidnappers. The industry is also faced with the problem of collision between some stakeholders, sometimes the traditional rulers.”
Also, the FG explained that the issue of double taxation is actually driving a lot of investors out of the country.
He also reported certain decisions of past government in the area of storage of explosives that are used for mining. Before now, the position is that any miner that wants to use explosives for mining must store them; in either the military barracks or police facilities.
Mohammed also complained about extortion, the position of the community development agreement; and the issue of many illegal miners.
“On the issue of double taxation, whereby mining companies are taxed by local and state governments. Two decisions were taken. One is that the council directed the Minister of Finance, Budget, and National Planning to deduct directly from federal accounts allocations of states; which have deprived FG of Nigeria’s revenue; due to it by the position of illegal taxes and levies on mining companies in their States.
“In other words, if a particular state engages in double taxation; you are imposing illegal taxes a duly registered mining company, and it is reported to the government, the Ministry of Finance will deduct that money your allocation.
“The intent is to ensure that we don’t scare away investors, they be local or foreign.”