New tax reform: 21 states pass harmonised tax laws as revenue boosts by 27% – Adesokan
The Executive Secretary of the Joint Revenue Board, JRB, Olusegun Adesokan, has disclosed that 21 states have passed the model harmonised taxes and levies law aimed at eliminating multiple taxation and improving revenue administration across the country.
Adesokan disclosed this on Wednesday while briefing journalists on the gains of the ongoing tax reforms in Abuja, explaining that the law would simplify tax collection and provide a more predictable tax environment for businesses.
He said the harmonisation initiative, developed in collaboration with the Presidential Committee on Fiscal Policy and Tax Reforms, reduced more than 100 different taxes, levies and charges at the subnational level to nine categories.
According to him, the nine categories include income tax, stamp duty, property tax, road tax, the development levy, economic development levy, annual levies, user charges and other approved charges.
Adesokan said the law was designed to address multiple taxation, inconsistent levies and confusing revenue collection practices that often place additional burdens on businesses operating across state boundaries.
He added that the legislation prohibits the sale of stickers and emblems for revenue collection, the mounting of roadblocks for tax purposes and unauthorised cash collection, warning that violators could face legal consequences.
The JRB executive secretary also disclosed that the 20 states whose revenue performances were compared recorded a 27 per cent increase in revenue between January and June 2026, compared with the corresponding period in 2025.
He said the increase came despite more income earners benefiting from lower or zero personal income tax under the new tax framework.
Adesokan explained that the reforms were intended to expand disposable income, stimulate economic activities and encourage more Nigerians to participate in the formal tax system rather than increase the tax burden on low-income earners.
“The mission is to ensure that the tax burden is fair and that Nigerians have the space to do their businesses, earn more and improve their livelihoods,” he said.
On the impact of the reforms on workers, Adesokan said an individual earning N20 million annually could see monthly take-home pay rise from about N1.281 million under the previous tax arrangement to approximately N1.362 million under the new framework.
He said the difference represented monthly savings of more than N80,000, amounting to nearly N1 million annually, depending on the applicable deductions.
The JRB chief explained that eligible deductions under the new system include pension contributions, mortgage interest and qualifying rent relief, among other provisions used to determine taxable income.
He said the reforms were also aimed at ensuring that individuals with lower incomes paid reduced or no personal income tax, while higher earners contributed according to the applicable tax rules.
Adesokan further announced the introduction of a unified national tax identification system designed to make taxpayer records accessible across jurisdictions and reduce instances of multiple taxation.
He explained that the system would allow state revenue authorities to verify taxpayers' records when they conduct transactions in other states, eliminating the need for repeated documentation and unnecessary payments.
He noted that illegal levies and roadside collections increased the cost of transporting goods, ultimately affecting businesses and consumers through higher prices.
Adesokan said the planned task force would operate across the country, including at the local government level, to enforce the harmonised tax laws and curb illegal collections.
He added that the reforms also introduced a more uniform framework for taxing businesses in the informal sector, addressing previous inconsistencies in the way states administered such taxes.
According to him, nano businesses with annual turnover of up to N12 million are exempt from income tax under the new framework, while the regulations also prohibit roadblocks and unauthorised cash collection for tax purposes.
Adesokan said the JRB would continue supporting state revenue authorities through digitalisation, training and improved collaboration to ensure effective implementation of the reforms and create a more business-friendly tax environment.
According to him, the national Tax ID would improve coordination among revenue authorities and make it easier for taxpayers to obtain government permits, licences and other services without being subjected to duplicate tax demands.
The executive secretary also said the JRB was working with the police and state revenue authorities to establish a national task force to remove unauthorised revenue collectors from highways and road transport corridors.
New tax reform: 21 states pass harmonised tax laws as revenue boosts by 27% – Adesokan