The house of representatives has passed a bill requiring the
federal government to refund to companies 50% of the income tax paid on
employee salaries.
The ’emergency economic stimulus bill’ introduced and passed
during Tuesday’s plenary session, was sponsored by all the principal officers.
However, it would need to be passed by the senate and sent
to the president for assent to become law.
According to a copy of the bill, it
seeks to protect employees and caution the economic implication of the pandemic
for companies registered under the Companies and Allied Matters Act (CAMA)
2004.
The bill states that eligible companies would be those do
not retrench their staff from March 1 till December 31, 2020.
It added that such employers shall during the period be
“entitled to 50% income tax rebate on the total of the actual amount due or
paid as pay as you earn (PAYE) tax under the personal income tax act cap C8 LFN
2004 (as amended)”.
It also seeks to suspend import duties on medical equipment
and drugs required for the treatment and management of the Covid–19, for a
period of three months, starting from the end of March.
The bill also provides for deferment of all mortgage
payments for a period of 180 days effective from March 1, 2020.
The deferment is applicable to residential mortgages
obtained by individual contributors to the national housing fund
Femi Gbajabiamila, the speaker, said the bill is temporary
and is meant to expire in December.
“We can review the bill before the expiration date if, in
the next few months, there is no need for it and we were able to beat the
virus,” he added.
As at Tuesday afternoon, Nigeria had 42 cases of the
coronavirus across five states and the federal capital territory.
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