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Private sector’s grouses on finance bill

Private sector’s grouses on finance bill
Photo by Kabusa16- Ask Nigeria

Members of OPS shortlist important steps to ensure an acceptable bill.

As the whole nation continues to observe the outcome of the Finance Act 2022 which was recently passed into law by the National Assembly and suspended by President Mohammadu Buhari, some of the members of the Organized Private Sector (OPS) have shortlisted necessary measures that would ensure that the document is workable and acceptable. President Buhari recently signed the appropriation bill into law, but deferred the signing of the Financial Bill, as a result of its conflict with the fiscal terms of the Petroleum Industry Act. This budget, which possesses the huge provision allocated for funding the impending general election was passed on December 28th, 2021 by the National Assembly.

However, this bill accrued huge controversies and a range of legislative amendments, including the Company Income Tax Act, Customs, Excise Tariff Act, Personal Income Tax Act, Petroleum Profit Tax Act, Stamp Duty Act, Value Added Tax Act, Capital Gains Tax Act, Corrupt Practices and Other Related Offenses Act and the Public Procurement Act. One major amendment evident in this bill is the provision that allows gains on digital assets to be taxed under the Capital Tax Act, with a 10 percent rate. This bill also allows income derived from gambling, gaming and lottery enterprises to be taxed under the Company Income Tax Act.

Federal government urged to be more careful in its tax waiver removal.

Also, the remittance of Value Added Taxes by specific companies. Entities like Oil and Gas companies and MTN which were appointed to deduct VAT on the basis of invoices received from their vendors, have now been directed to remit this VAT to the Federal Inland Revenue Services (FIRS) on or before February 21, 2023. Additionally, a 0.5 percent levy is set to be imposed on all imported goods. This will be used in the payment for subscriptions and other financial obligations to multilateral institutions. According to the bill, all the telecommunication services in the country will as well be subjected to Excise duties, with the Minister of Finance, Budget and Economic Planning, responsible for supervising the Tariff Review Board.

Lagos Chamber of Commerce and Industry has in response, urged the federal government to be more careful in its approach to saving over N6 trillion by the removal of tax waivers and exemptions that had been granted to some big companies in the oil and gas sector. In its statement titled “LCCI Comment on the 2022 Finance Bill”, the Chamber asserted that the presidential assent on the legislation was to subject it to further review. In the statement, the LCCI urged the government to be immensely conservative in raising the rates of taxes, as there were new paradigms for to rescue the tax expenditures and increase the government’s revenue for 2023. The chamber commented that leaving the rates at their levels will not cause a revenue loss.

Recommendation of the retention of the Tertiary Education Tax at 2.5%.

The government further asserted that the divestiture by some international companies in the oil and gas sector have caused the need for the country to reposition the industry via a steeply implemented Petroleum Industry Act (PIA), to enhance new investments and encourage local companies to reflate the sector with necessary investments. LCCI further recommended the retention of the Tertiary Education Tax at 2.5 percent, as it had just been recently increased. The Chamber again suggested the retention of the 30 percent Company Income Tax across all oil and gas companies, as well as the amendment of the Petroleum Profit Tax Act with similar provisions in the PIA Section 1042.

Again, the LCCI suggested an extensive stakeholders’ consultations for the Finance Bill before it is passed by the National Assembly, whilst promising to mobilize the private sector into supporting the implementation of the 2023 Federal Budget. The MDAs and Government Owned Enterprises (GOE) were also urged to increase their revenue mobilization efforts in an efficient system where private enterprises can also grow. The Centre for Promotion of Private Enterprises (CPPE) however described the process of passing the bill as a hasty one, with no room for public opinion or stakeholders’ engagement. The Chief Executive of CPPE, Dr. Muda Yusuf criticized the Senate for giving only a 24- hours notice for Stakeholders to attend the hearing and lauded the House of Assembly for giving a more generous notice.

Bill impositions predicted to have inflationary implications.

Yusuf noted that the bill possessed impositions of excise duties on every service, with its rates determined by the presidential order. He pointed out that these had immense inflationary implications on both the investors and citizens, as the production and operation costs would be affected and further denigrating the confidence of investors. However, it is hoped that when the new Finance Bill is passed, it will possess the inputs of the private sector operators and stakeholders, thus, reflecting the realities of Nigeria’s economy.


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Admin
1
14 days ago

Private sector’s grouses on finance billMembers of OPS shortlist important steps to ensure an acceptable bill. – Express your point of view.

Member
8
13 days ago

When the new Finance Bill is passed, it is hoped that it will include input from private sector operators and stakeholders, reflecting the economic realities of Nigeria.

Abusi
Member
8
13 days ago

It is clear the finance Bill was rushed. It was not given to Private sectors and civil societies for debate and scrutiny. I hope the bill doesn’t pose another threat to the economy. Due process was not followed.

Member
9
13 days ago

If the bill is implemented,it will really affect lots of things.The inflation rate is on the high side already and for the government to increase tax,that mean the inflation will keep increasing more and it is majority that will suffer for it.

Member
8
13 days ago

I’d advise increase of revenue and mobilization efforts in an efficient system where private enterprises can also grow. Also, federal government to be more careful in its approach to saving removal of tax waivers and exemptions that had been granted to some big companies in the oil and gas sector.

Member
9
13 days ago

Private sector’s grouses on finance bill. All this tax is not necessary for now. The country is facing so much inflation

Member
8
13 days ago

The bill’s implementation will have a significant impact on a number of things. The government’s decision to raise taxes will only cause the inflation rate to rise further, with the majority of people suffering as a result. The inflation rate is already high.

Member
8
13 days ago

A number of the participants in the Organized Private Sector have compiled a list of the essential steps that must be taken to guarantee that the document can be implemented and is acceptable.

Member
8
13 days ago

Implementation of the measure would have far-reaching consequences. Since a rise in government taxes is likely to lead to a further rise in inflation, the general populace stands to lose out if it is implemented.

Member
8
13 days ago

It is intended that feedback from private sector operators and stakeholders will be incorporated into the new Finance Bill once it is passed, so that it can more accurately represent the economic realities of Nigeria.

Member
8
13 days ago

The provision in this measure that allows profits on digital assets to be taxed under the Capital Tax Act, albeit at a reduced percentage rate, is one of the key amendments that is apparent in this law.

Member
8
13 days ago

Additionally, the Company Income Tax Act will be able to tax profits made from gambling, gaming, and lottery operations thanks to this piece of legislation.

Member
8
13 days ago

This will be utilized in the payment of subscriptions in addition to other financial responsibilities owed to international institutions.

Member
8
13 days ago

The Centre for Promotion of Private Enterprises (CPPE), on the other hand, characterized the process of enacting the bill as a hurried one in which there was no place for public opinion or interaction from stakeholders.

Member
8
13 days ago

The impact of the measure’s implementation would be extensive. The general people stands to lose if higher taxes are adopted because they will probably cause inflation to increase even more.

Member
8
13 days ago

To better represent the reality of Nigeria’s economy, it is intended that the new Finance Bill will incorporate input from private sector operators and stakeholders.

Member
8
13 days ago

As a result, they had significant repercussions for inflation for both the residents and the investors, as the costs of production and operation would be affected, in addition to further undermining the trust of investors.

Member
8
13 days ago

If higher tax is implement it will cause inflation in which inflation is happening in the country already price of goods will increase I hope this bill don’t affect or cause more issue to the country

Member
8
13 days ago

Why will the President refuse to sign in the financial bill that goes against the Petroleum Industrial Act and why there be a tax waiver for some companies? There are things we are not getting here.

Member
8
13 days ago

If Organized Private Sector (OPS) have shortlisted necessary measures that would ensure that the document is workable and acceptable then our President Mohammed Buhari should pass into law the financial act except there is something else.

Member
8
13 days ago

One of the most important changes is the clause that allows digital asset profits to be taxed under the Capital Tax Act, albeit at a lower percentage rate.

Member
9
13 days ago

The financial bill is such an important bill and really needs to be considered for all stakeholders and public sector in order to benefits from it input

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