Nigerian govt okays two Executive Orders, five amendments of tax policies

Nigerian govt okays two Executive Orders, five amendments of tax policies
June 07 00:06 2018

By Ahmed Idris

The Federal Executive Council (FEC) on Wednesday approved two Executive Orders and five Amendment Bills to the country’s tax policies aimed at reducing tax burden on Nigerians and boosting ease of doing business.

Addressing State House correspondents at the end of the weekly FEC meeting in Abuja, Minister of Finance, Mrs Kemi Adeosun, said the executive orders are Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order.

She said the five Amendment Bills approves by the council include the Companies Income Tax Act (Amendment) Bill, Value Added Tax Act (Amendment) Bill; Personal Income Tax  Act (Amendment) Bill, Industrial Development (Income Tax Relief) Act (Amendment) Bill and the Customs, Excise, Tariff ETC (Consolidation) Act (Amendment) Bill.

The minister said the approval followed the presentation of a memorandum on the report of the National Tax Policy Implementation Committee on Tax Laws Reform.

She said the new tax policies would remove obsolete, ambiguous and contradictory provisions in the laws, increase government revenue 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 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 lost for 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 said.

She said 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 per cent to 15 per cent.