States banning alcohol should not receive FG allocation from alcohol tax – Atiku

States banning alcohol should not receive FG allocation from alcohol tax - Atiku

Presidential aspirant and former Nigerian vice president Atiku Abubakar, said this during the public presentation of a book, “Nigerian Federalism: Continuing Quest for Stability and Nation-Building”, produced by the African Policy Research Institute on Monday 12 December 2016.
According to Atiku,

“Think about this: sales taxes ought to be collected and used by states and local governments.

“Of course there is nothing inherently wrong in a federal sales tax but states must agree with the federal government what items should be taxed, at what rate and how the proceeds are to be shared. They ought to be uniform.

“If a state is opposed to cattle tax or bicycle tax or alcohol tax, or pollution tax, for instance, it should not expect to share in the tax proceeds from those items. That is called fairness.

“In fact, states should be the ones collecting those taxes on behalf of the federal government and get compensated for their work, through an agreed sharing formula, rather than duplicating the cost of collection.

“Federal intrusion makes it more difficult for a state to collect taxes from items that may be peculiar to it, thereby narrowing the tax base. And it makes enforcement even more difficult.”