Tax news

A tax expert and partner with Price water Cooper (PwC), Taiwo Oyedele, has said the current tax regime in Nigeria does not encourage informal businesses aspiring to formalize their operations. Oyedele spoke during a panel discussion at the Special Policy Dialogue Colloquium, entitled “Policy Change – The Enabler of Sustainable Growth”, organized by the Financial Derivatives Company in Lagos on Monday. He said: “Under the AfCFTA, we will need to formalize so many businesses because if you are not formalized, you can’t play in Africa. “In Nigeria today, if you have your business not registered with the Corporate Affairs Commission (CAC) and you want to be fully tax compliant, the maximum income tax you pay is about 19 percent. If you make the mistake of formalizing it and you register with the CAC, your tax goes up to 42 percent. How would that make sense for anybody to do?” He said the country needs a mindset change to help drive policy in the right direction. “The biggest things we have to do to make the most impact are not the most difficult. They are around policies. The road, the rails and the ports will take time, but policies can give you result in a few months,” he added. He charged the nation’s government to carry out a specific assessment, saying “most of the things we need to do are things that are good for us anyway, with or without the free trade area. They are good for human beings, good for businesses and the economy.”   Source: daily trust

The Executive Director, Rural Women and Youth Development (RUWOYD), Sokoto State, Abudu Yusufu has urged governments to institute effective tax structures to increase the size of national budgets by raising corporate tax payment. Speaking at a Stakeholders Forum on Tax and Gender-Responsive schools under the ActionAid initiative of ‘Tax Justice & Gender Responsive Public Services and Breaking Barriers’, he said, “Effective tax structures can create incentives to improve governance, strengthen channels of political representations and reducing corruption.” He noted that “fair and effective tax collection is effective for collecting revenue to deliver services that citizens need. It is a powerful tool for redistributing wealth within society to address poverty and inequality. “A functioning state that can meet the basic needs of its people must rely ultimately on its revenue to meet development objectives,” he said. Yusufu said tax is fair when it helps reduce poverty and fulfil human rights, that is, when tax takes little from the poor, more from the rich and when taxes are used to pay for public services. He added: “This means that VAT is low, that tax exemptions exist for basic products that help poor people; that tax is not charged many times on the same thing, and that no huge tax increases happen for poor people year on year.”   Source:  daily trust

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Tunde Fowler, has hinted that the country’s various tax and excise law reforms might soon be harmonised, as the agency inaugurated the reconstituted National Tax Policy Implementation Committee (NTPIC). Speaking at the inauguration ceremony, Fowler said since the committee had been officially put in place, the National Assembly might soon be required to pass a bill to carry out the harmony exercise. Fowler charged the Technical Committee to accelerate the development and submission of a draft, Finance Bill, to harmonise the various tax and excise law reform efforts. “It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by the reconstituted NTPIC. “Once agreed, these fiscal measures are to be submitted to the Economic Management Team and Federal Executive Council, for approval and ultimate transmission to the National Assembly, for passage into law, as part of the efforts to support the 2020 Executive Budget proposal.” What you should know: Tax harmonisation is generally understood as an adjusted tax system of different jurisdictions in the pursuit of a common policy objective. This type of policy involves the removal of tax distortions affecting commodity, and factor movements in order to bring about a more efficient allocation of resources within an integrated market. Controlling tax rates does not only stabilize tax revenues but is also sometimes necessary for moving forward with economic and political integration. On the other hand, deregulating tax rates maintains the autonomy of member countries in tax matters for their own short-term economic and social policy purposes. In addition, it mitigates political distortions. Prior to this development, OXFAM, an International Non-Governmental Organisation, had advised the Nigerian government to review the country’s tax incentive policy, which currently costs the country huge revenue loss.   Source: Nairamatrics

The Federal Inland Revenue Service on Wednesday said it generated N5.23tn for the Federal Government in four years, aside from the income from crude oil. The Chairman of the FIRS, Mr Babatunde Fowler, stated this during his visit to the Chief of Army Staff, Lt Gen Tukur Buratai. He added that the army’s efforts in ensuring nationwide security had created the “environment for the huge revenue generation.” He said, “We are quite aware that unrest brings about poverty, unemployment and instability, which affect the economy. However, in the last four years, the economy has come out of recession and several sectors of the economy are experiencing improved performance. “That is why in the last four years, we have generated in excess of N5.23tn. This is outside oil revenue, which has never happened before. A part of this reason is that the Nigerian Army has done its beat of dealing with situations that would have caused instability and affected an environment conducive to investment. “If there is anything we can do to assist the army in its operations, but not on the war front, we will be willing to show our support.” Fowler announced the FIRS’ donation of 20,000 books and literature on tax education for distribution to the various Army Command Secondary schools and Command Children schools. The army chief, in his response, commended the FIRS for the improvement in the revenue base of the country. He said, “Improving the revenue generation of the country has helped a lot of investments to flourish and the governance will be better for it. We want to assure you that we will remain undaunted in our mandate. It is our constitutional responsibility to protect and defend the territorial integrity of the country. “We do this with the Nigerian Navy, the Nigerian Air Force and other security agencies playing their part. We are ever ready to continue our responsibilities to ensure that we have peace and stability so that the economy will thrive. So, while we do the physical aspect, you will do the financial aspect of ensuring security.”   Source:  Lagos Tv

The Executive Chairman of the Federal Inland Revenue Service (FIRS) and Chairman of the Joint Tax Board (JTB), Tunde Fowler, has inaugurated a team of tax experts charged with the responsibility for implementation of the National Tax Policy. He also inaugurated a Technical Tax Policy Drafting Committee which began a workshop on National Tax Policy Implementation same day. The inauguration was important and in line with the Federal Government’s determination to reform Nigeria’s tax system towards effective economic growth, Fowler said in Abuja yesterday. He said he inaugurated the Technical Tax Policy Drafting Committee same day following the importance and urgency of its assignment to national economy. He also charged the Technical Committee to work harmoniously and assiduously in order come up, within a few weeks, with a tax policy document that will address achieving sustainability in revenue generation, identifying new and enhancing the enforcement of existing revenue streams and achieving cohesion in the revenue ecosystem. The Chairman of the Technical Committee, Ambassador Adeyemi Dipeolu said he assured that assured that the team would work hard to achieve a good result.   Source: Punch

Dr. Cyril Ikemefuna Nwobodo Ede the immediate President of the Chartered Institute of Taxation of Nigeria (CITN) For us to be truly seen as making a determined push to diversify the economy away from taxes, what we require is a sustained effort towards investing in critical infrastructure such as power and transportation which impacts greatly on industrial development. I am delighted that government is gradually taking decisive steps in this direction as evidenced on ongoing rails projects, major road rehabilitation and reconstruction in key arterial roads, investments in power generation and transmission projects etc. When these initiatives are sustained, in no time, the right environment would be created for investors to set up businesses that would operate profitably, conserve foreign exchange, reduce unemployment and pay taxes to government.He spoke to New Fortunes recently on topical issues bordering on the economy, taxation, revenue diversification, financial reporting, among others; and harped on the need for an uptick in Nigeria’s non-oil revenue stream. VAIDS assessment On the whole, I would say the programme was successful, not really in terms of numbers but the awareness generated. The publicity accorded the VAIDS programme impacted on the level of awareness and perception of Nigerians on the need to be tax compliant. Our Institute was involved in the sensitization campaign for the programme and our assessment of the feedback generated supports the fact that the programme lived up to expectations. We can only hope that in future there should be better synergy amongst the tax authorities at the federal and state level towards a successful run. By default, response to any government pronouncement, policy or programme is to shuttle between indifference and skepticism. Only in very few instances have I felt a government programme has a chance of success. But report has shown that in the first four months of implementation, VAIDS delivered N17billion into government coffers. Two months later, an additional N6billion was realised through the scheme.   Source: This days

The Federal Inland Revenue Service (FIRS) has directed the newly inaugurated Technical Tax Policy Drafting Committee to harmonise the various tax and excise law reforms in the proposed Finance Bill. The FIRS Chairman, Mr Babatunde Fowler, gave the directive at the inaugural meeting of the Reconstituted National Tax Policy Implementation Committee (NTPIC) in Abuja on Tuesday. Fowler appealed to the technical committee to work assiduously to produce a singular set of fiscal measures that would be considered and approved by the reconstituted NTPIC in the next few weeks. He also enjoined them to accelerate the drafting and submission of a draft Finance Bill in good time. “I am charging the chairman and members of this Technical Committee with the responsibility of accelerating the drafting and submission of a draft Finance Bill (and if deemed necessary, any draft Executive Order (s), to harmonise the various tax and excise law reform efforts. “It is our expectation that the Technical Committee will work assiduously over the next few weeks to produce a singular set of fiscal measures that will be considered and approved by NTPIC. “Once agreed, these fiscal measures would be submitted to the Economic Management Team, and Federal Executive Council (FEC) for approval and ultimate transmission to the National Assembly for passage into law. “This will be as part of the efforts to support the 2020 Executive Budget Proposal,’’ he explained. He said that the service under his leadership remained committed to engaging with other tiers and arms of government, particularly the National Assembly to solicit their support on the speedy passage of the bill when presented. The chairman added that when that was done, the revenue enhancement initiatives of the service would have appropriate legislative backing to be fully effective. The chairman of the committee, Mr Adeyemi Dipeolu, thanked FIRS and pledged on behalf of other members to justify the confidence reposed in them. Dipeolu said that the task of the committee had been made known and they would work strictly on the template given. He pledged to engage the organised private sector and other relevant stakeholders to get their inputs in the proposed bill. (NAN)   Source: This days

Abia State Deputy Governor, Rt Hon Ude Oko Chukwu, has called on citizens and entrepreneurs to invest in the state and enjoy tax waivers for a minimum of five years. Sir Oko Chukwu who made the call at Afaraukwu Umuahia during the opening of a mini residential estate built by a Lagos based security consultant, Chief Nzeribe Okegbue, informed that the waivers are to encourage Abians and others to contribute to the development of the state. According to him, “There is no better state to invest in as our state is currently rated among the top three safest in Nigeria and the administration led by Dr Okezie Ikpeazu is ready to support you and others to ensure good returns on your investment. We are committed to the industrialization of the state and will continue to provide support to investors as well as provide necessary infrastructure to ensure that you reap good returns on your investment within a peaceful atmosphere.” He applauded the decision of Chief Okegbue and assured him of the willingness of the government to provide enabling environment for him to further expand his investment in the housing sector which he described as crucial to the plans of the government to provide affordable housing to residents and visitors to the state through partnership with the private sector. In his address, Chief Nzeribe who is the Managing Director of Lagos based Combatants Guards Ltd, expressed appreciation to the government for encouraging him to invest in his home state and assured that he is ready to expand his investment in the state as well as make available his expertise to support manpower development in the state. He applauded the efforts of Governor Ikpeazu’s administration to positively change the Abia narrative and promised that he will invite his friends to also come to the state to invest. In his remarks, the Chairman of the occasion, Chief Ndidi Okereke, described Abians as the most intelligent and hardworking people in Africa and called for citizens support to the investment drive of Governor Okezie Ikpeazu administration. According to him, if Abians living outside the state decide to bring thier investments home the state will certainly become the most industrialized in Africa. The ceremony was witnessed by top government officials, including the State Commissioner For Information, Chief John Okiyi Kalu, Director General of Broadcasting Corporation of Abia State, Sir Uchenna Dike, former Commissioners including Chief Mascot Obike, traditional rulers and others.   Source: daily trust