The federal executive executive has approved 2 executive orders and five amendment fees to remove the tax added value of the residential property and change the company's tax revenue law.
Kemi Adeosun, finance minister, said the amendments will reduce Nigeria's tax burden and accelerate the ease of doing business.
The two approved executive orders are: Tax Amount Tax Rate (Amendment) The Order and Evaluation of Taxes That Guarantee the Duty Excise and Appropriate Order Rates while the Five Taxes Taxes include the Law on Income Tax Act of Companies (Amendment) and Amendment Bill of Law. Others are Customs, Excise, Bill of ETC (Consolidation) Bill (Amendment) Bill; Law on Personal Income Tax (Amendment) and Income Tax Relief Bill (Changes).
He said that the approval was based on a report by the national committee on the implementation of the tax tax reform tax policy. Adeosun said that new tax rules will eliminate obsolete, unclear and conflicting provisions on laws, increase government revenues and simplify the process of paying taxes and doing business.
“Majority of the provisions approved today are actually removing the tax burden and clarifying obsolete and ambiguous areas of tax. So for example for VAT there is to be an exemption for residential property, leases on rental, transport for the general public and life insurance.
These are areas that previously were VAT-able and what was approved today was that these areas should be removed, then, they shouldn’t be subject to VAT. In the short term, of course, that means a revenue loss for the government. But we think in the long run that is the right thing to do is improving ease of doing business and reducing the tax burden on our people which is really one of the objectives of this government.”
She disclosed that the government was proposing an amendment to the company income tax aimed at reducing the Right of Tax on micro, small and medium enterprises (SME) from 20% to 15%.
Adeosun said the council approved N1.6billion for the procurement of 68 anti-smuggling vehicles for the Nigeria Customs Service. “The operational vehicles currently available for the NCS is grossly inadequate for effective anti-smuggling activities. The need to effectively patrol the borders of the country, enhance Customs’ bid to suppress smuggling and increase revenue collection gave rise to the request to purchase 68 operational vehicles.”
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“Majority of the provisions approved today are actually removing the tax burden and clarifying obsolete and ambiguous areas of tax. So for example for VAT there is to be an exemption for residential property, leases on rental, transport for the general public and life insurance.
These are areas that previously were VAT-able and what was approved today was that these areas should be removed, then, they shouldn’t be subject to VAT. In the short term, of course, that means a revenue loss for the government. But we think in the long run that is the right thing to do is improving ease of doing business and reducing the tax burden on our people which is really one of the objectives of this government.”
She disclosed that the government was proposing an amendment to the company income tax aimed at reducing the Right of Tax on micro, small and medium enterprises (SME) from 20% to 15%.
Adeosun said the council approved N1.6billion for the procurement of 68 anti-smuggling vehicles for the Nigeria Customs Service. “The operational vehicles currently available for the NCS is grossly inadequate for effective anti-smuggling activities. The need to effectively patrol the borders of the country, enhance Customs’ bid to suppress smuggling and increase revenue collection gave rise to the request to purchase 68 operational vehicles.”
Räägi sõbrale... #AFRICA ... spill TEA ABOUT THE TOPIC ABOVE.... Easy on Shade #jaiyeorie
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