FG To Begin Deduction Of Illegal Mining Charges From Lagos’ Federal Allocation
Mining companies in Lagos are to resist paying any illegal fees imposed on it by the city’s authorities, the Federal Government warned yesterday.
According to the Minister of Information and Culture, Lai Mohammed, the decision was reached at a meeting of the Federal Executive Council presided over by the President Muhammadu Buhari.
It was agreed that any illegal fees imposed on the mining companies, henceforth would be deducted from the city’s Federal Allocation.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, has been instructed to begin to implement the directive.
The Information Minister explained that the decision was taken to eradicate double taxation in the mining sector and also gain investors’ confidence.
He said, “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 allocations of states which have deprived Federal Government of Nigeria’s revenue due to it by imposition 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 on a duly registered mining company, and it is reported to government, the Ministry of Finance, Budget and National Planning will deduct that money from your allocation.
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“The intent is to ensure that we don’t scare away investors, be they local or foreign. This will go a long way to reassure the investors that Nigeria is a safe place to invest now.”
The minister added that FEC also directed the National Economic Council to dialogue with the state governors in order to make them understand that states can participate in mining as corporate bodies by registering companies.