Zainab Ahmed, minister of finance, budget and national
planning, says there may be modest increases in taxes and tariffs on certain
businesses and individuals over the medium term.
Addressing stakeholders at a public hearing on the 2021
finance bill on Monday in Abuja, Ahmed said the government is also considering
new taxes as the “economy was now on a recovery path”.
The hearing was organised by the house of representatives
committee on finance.
The minister said that a couple of reforms and amendments
had been recommended in the draft 2021 finance amendment bill, adding that more
will be introduced in the middle of 2022.
She said more fiscal reforms were still in view as the
ministry could not take all the proposals collected from stakeholders.
“While these issues may require most increases in taxes and
tariffs on certain businesses, industries, and individuals over the medium
term…,” Ahmed said in her closing remarks.
”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 explained that the ongoing legal cases in court
against the federal government on VAT and stamp duties had prompted the finance
ministry to steer clear of those areas.
She, however, expressed hope that by mid-2022, the cases
might have been dispensed with, and then reforms in those areas could be
proposed for parliament to consider.
Ahmed said that there might be a need to revisit the
antiquated stamp duties and capital gains tax for holistic reform by the
parliament.
“We prepared this draft bill along five reform areas, the
first domestic revenue mobilisation, 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.”
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