August 20, 2019

Oyo Government Assures SMEs on Taxation

Oyo State government has promised that it will not increase tax on small and medium scale enterprises, SMEs, as a means of boosting its revenue base. Giving this assurance, the Chairman, Oyo State Board of Internal Revenue, BIR, Aremo John Adeleke, in a chat with newsmen at his office in Ibadan, stated that the State would re-visit the State’s tax net and capture areas not already captured in order to improve internally generated revenue. He added that Governor Seyi Makinde’s government would seek for ways to build and nurture the growth of SMEs in the State rather than to burden them with heavy tax that could drive them out of business. Adeleke stated, “It is in line with the promise of governor Seyi Makinde to empower small scale businesses in the State to propel growth in our economy. As he works assiduously to attract foreign and domestic investments to the State, he is also working to establish and sustain small and medium scale industries in Oyo State. So the idea of tax increament on businesses is not even to be discussed here. We will rather nurture them to grow and be self-sustaining than to over-burden them with tax”. “The government nonetheless expects all SMEs to comply with all extant tax laws, especially the ones on personal assessment of business proprietors, withholding tax and VAT payable to the State”, he added. Aremo Adeleke enjoined commercial vehicle owners and drivers as well as motorcycle riders and owners to collect necessary documents from approved agencies and tax stations under Oyo State internal Revenue Services instead of doing same in neighboring States. He said “We assure everyone of quick turnaround time of registering or renewing vehicle documents. We also promise all our patrons quick availability of number plates for all categories of vehicles.” Adeleke used the occasion to call on the staff of the board of internal revenue to be quick, responsive and work with utmost integrity and professionalism which he said was the best way to support the present administration in its drive for improved internally generated revenue.   Source: Punch

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Osinbajo: Resolution on VAT Exemption for Capital Market Operators, Stamp Duties Ready Soon

The federal government will soon come up with a resolution on issues bordering on the collection of stamp duties as well as the extension of Value Added Tax (VAT) exemption on capital market transactions, among others, the Vice-President, Prof. Yemi Osinbajo disclosed weekend. VAT charges on transactions in the capital market, which was suspended in 2014 by then Minister of Finance, Dr. Ngozi Okonjo-Iweala to encourage increased trading activities in the market, ended on July 24, 2019. Osinbajo, who was represented by the acting Director General of the Securities and Exchange Commission (SEC), Ms. Mary Uduk, at the awards night of the Association of Issuing Houses of Nigeria (AIHN) in Lagos, stated that VAT exemption, stamp duties and other issues were being addressed currently, adding that a resolution would be announced very soon. A press statement issued by the SEC Head, Public Communications, Efe Ebelo quoted Osinbajo as saying: “We have also commenced work on other aspects of CAMMIC’S requests that require government intervention and would be collaborating with many of you in the capital market community to successfully address them. “My Office is actually represented on the CAMMIC. I will therefore be receiving periodic reports on suggestions to further strengthen our support of your efforts and the market as a whole. “We all desire a capital market that would broaden access to economic prosperity by enabling the emergence of financially responsible citizens, accelerating wealth creation and wealth distribution, providing capital to small and medium scale enterprises and catalyzing housing finance. “Let me therefore commend the Securities and Exchange Commission, CAMMIC and the capital market community for the laudable accomplishments so far recorded in the implementation of the master plan, especially in the areas of dematerialisation of share certificates, e-dividend mandate, facilitation of access to alternative investments as well as various initiatives to enhance the commodities eco-system.” The vice-president described the capital market as essential and key to achieving the economic goals of the present administration as enshrined in the Economic Recovery and Growth Plan (ERGP), noting that the administration has worked hard to ensure a stable macroeconomic environment, which is necessary to attract and sustain investment needed to propel the economy forward. He added: “We see the capital market as an important driver of our growth agenda and we will continue to collaborate with the capital market community to support its efforts to positioning our market to where it should be. This administration and especially my office has supported the ten-year Capital Market Master Plan implementation initiatives since inception in 2015.” He described AIHN as an important player in the Nigerian capital market and commended its members for directly contributing to the economy by aggregating the much-needed funding to support entities in the private and public sectors, adding that government and the private sector need to continue to work together to create sustainable businesses and provide the necessary jobs for the teeming youths. The ERGP of the Buhari administration, he noted, recognises critical sectors for financing to include agriculture, infrastructure, power and SMEs, but added that the government cannot do this alone. According to him, government must evolve from an omnibus provider of citizens’ needs into a force for eliminating the blockages that restrict innovation and market-based solutions. “In this regard, government has collaborated with the capital market community and particularly with members of your association in structuring novel arrangements to fund infrastructure development through instruments such as the FGN Sukuk Bond, FGN Green Bond, Infrastructure Funds as well as the planned trading of tax credit instruments. “Therefore, as you chart the course of the capital market for the next four years, I assure you of this administration’s support and I look forward to working with you and other stakeholders in the financial system to actualize a vibrant economy of our dreams,” he added. In his address, the President of AIHN, Mr. Chuka Eseka, expressed the need for the private sector and the capital market to play driving roles in achieving economic prosperity and development while partnering with the government at all levels. He emphasised the need for market operator role in the financial system value chain to be strengthened to enable the capital market deliver on its role as a catalyst of economic growth.   Source: This days

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