The federal government said unremitted value-added tax (VAT) or withholding tax would henceforth be deducted directly from the revenue due to the affected state and local government, as well as ministry, department or agency (MDA).
The move, according to the government, is aimed at compelling government entities to live by example to individuals and businesses.
The Executive Director, Large Taxpayers and Government Directorate, Nigerian Revenue Service (NRS), Amina Ado, stated this on Tuesday in Abuja at the opening of a national workshop organised by the Nigerian Revenue Service (NRS).
She said it has been observed that while many sub-national entities are exemplary in their civic duties, there are still some significant structural leakages, especially in the prompt deduction and delay in remittance of VAT and withholding tax.
She said under the Nigerian Tax Administration Act, the Office of the Accountant General of the Federation has been empowered to deduct all unremitted revenue due from all MDAs or government from its budgetary allocation and remit to the relevant tax authorities.
