Nigerians have been told to prepare for an increase in tax payment as well as the imposition of a new tax regime on certain goods, the federal government has announced.
The Minister of Finance, Budget, and National Planning, Zainab Ahmed made this known on Monday in Abuja while speaking with stakeholders at a public hearing on the 2021 finance bill organized by the House of Representatives committee on finance.
According to the Minister, the adjustment in taxes is part of the provisions of the 2021 fiance amendment bill.
She added that apart from the provisions of the bill, some other adjustments will be introduced which the government aims to implement by the middle of 2022.
In her words, ”Our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments.”
Ahmed however said the adjustments don’t include the controversies surrounding the collection of VAT which is currently a court matter involving the federal government and some state governments.
When the court has taken a final decision on the matter, however, the Minister said the federal government can now take the next step.
“We prepared this draft bill along five reform areas, the first domestic revenue mobilization, the second is tax administration and legislative drafting, third is International taxation, fourth is financial sector reforms and tax equity and fifth is improving public financial management reform,” the finance minister said.
“The provision in the draft bill is proposing to amend the Capital Gains Tax Act, Company Income Tax, FIRS Establishment Act, Personal Income Tax, Stamp Duties Act and Tertiary Education Act, Value Added Tax, Insurance Police Trust Fund, and the Fiscal Responsibility Act.
“This is to amend the Police Trust Fund Act and the Nigerian Trust Fund Acts, the purpose is to empower the FIRS to collect the Nigerian trust fund levies on companies on behalf of the fund itself.
“Currently, because there is no such provision, the FIRS is unable to start collecting on behalf of the fund. Also, it is to streamline the tax and the levy collection from the Nigerian companies in line with Mr President’s administration’s ease of doing business policy.
“So we do not have NASENI going out to collect that tax, the FIRS will collect on their behalf during their collection process, and it will be passed through to them.”
