Federal Government has threatened to slash the allocation of states where registered mining companies are taxed by Local and State Governments.

The Minister of Information, Alhaji Lai Mohammed issued the threat shortly after the expanded Federal Executive Council Meeting, FEC.

This decision is sequel to a memo presented to FEC by the Minister of Mines and Steel Development, Lekan Adegbite, seeking approval to address major challenges facing the mining industry.

Mr Adegbite said the act amounts to double taxation which is driving out investors from the country.

Addressing media in Abuja, Alhaji Mohammed said Council has directed the Minister of Finance, Budget and National Planning, Zainab Ahmed, to deduct directly from the Federation Account’s Allocation to States which have allegedly deprived the Federal Government Revenue due to illegal taxes and levies on mining companies.

Comments are Closed