Tag: Taxes

  • FG announces suspension of taxes on maize, rice, others

    FG announces suspension of taxes on maize, rice, others

    In its bid to tackle food inflation in the country, the federal government on Monday announced that certain food commodities imported via land borders will no longer incur charges, levies, or taxes.

    This decision was made known  by the Minister of Agriculture and Food Security, Abubakar Kyari, during a press briefing at the National Press Centre in Abuja

    According to Kyari, 150-day Duty-Free Import Window will apply to designated food items such as cowpeas, wheat, husked brown rice, and maize.

    This initiative is part of the President’s Accelerated Stabilization and Advancement Plan, aimed at achieving economic stability and enhancing food security across the nation.

    The minister highlighted the government’s ongoing efforts to combat food inflation, which has contributed to significant price increases in recent times.

    He said: “The federal government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

    “Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

    “I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

    “In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”

  • Multiple taxes creating problems, should be suspended – Tinubu’s appointee

    Multiple taxes creating problems, should be suspended – Tinubu’s appointee

    Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, has stated that the multiple taxes levied at various government levels are making life difficult for everyone in Nigeria.

    In a live appearance on Channels Television’s Sunrise Daily on Wednesday, Oyedele said, “We do not understand why we have so many taxes in Nigeria, just creating problems for everyone.”

    According to Oyedele, taxing rights at all levels of government need to be properly defined and addressed to the roots, starting with the country’s Constitution.

    “We want to go into the Constitution itself and address the problem from the roots. Let’s put it there and let it be clear. Clearly define the taxing rights at the different levels of government — this should be what you can collect — from local government to state to federal and here are your responsibilities,” he said.

    “Some of the issues that people are facing have removed the side mirror; it’s almost like living in the jungle. We should agree to suspend these taxes.”

  • FG to Nigerians: Prepare ahead for more taxes, levies, tariffs

    FG to Nigerians: Prepare ahead for more taxes, levies, tariffs

    The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed yesterday asked Nigerians to brace for more taxes, levies and tariffs.

    She however said the new taxes and levies will not be introduced until there is improvement in the economy.

    The minister, during a public hearing organised by the House of Representatives Committee on Finance on the 2021 Finance Bill at the Green Chamber of the National Assembly.

    House of Representatives Speaker Femi Gbajabiamila stressed the need to repositioning the nation’s financial system to plug wastes, close openings for corruption, create opportunities for employment and stimulate stability and growth in the nation’s productive sectors.

    The minister disclosed that there was the need for the country to focus more on non-oil sector revenue to finance critical infrastructure.

    She said the non-oil sector has performed better than the oil sector, recording about 171.3 per cent above the projected figure as at September 30, 2021, averaging N1.31 trillion.

    Mrs. Ahmed said: “As of Sep. 2021, the Federal Government’s retained revenue was N4.56tr, achieving 75% of Budget; Federal share of Oil Revenues was N845 billion (representing 56.3% pro-rated performance). Federal share of Non-Oil revenues was N1.31 trillion (117.3% above budget).

    “Companies Income Tax (CIT) & Value Added Tax (VAT) collections were N616 billion and N274.4 billion representing 121% and 153%, respectively, of the pro-rata targets. Also, Customs collections were N418.97 billion.

    “Clearly, our ongoing fiscal reforms of the last six years are yielding tangible results. However, the ministry is closely studying the following issues, developments & policies.”

    The minister said some 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 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 reforms in those areas could be proposed for parliament to consider.

    Mrs. Ahmed said there may be 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.”

  • Court declares Rivers, not FG should collect VAT, income taxes, others

    Court declares Rivers, not FG should collect VAT, income taxes, others

    The Federal High Court sitting in Port Harcourt has declared Rivers Government, not the Federal Inland Revenue Services (FIRS) should collect the Valued Added Tax (VAT) and Personal Income Tax (PIT) in the State.

    The Court presided over by Justice Stephen Dalyop Pam also issued an order of perpetual injunction restraining the Federal Inland Revenue Service and the Attorney-General of the Federation, both first and second defendants in the suit, from collecting, demanding, threatening and intimidating residents of Rivers State to pay to FIRS, personnel income tax and VAT.

    Justice Pam made the declaration while delivering judgement in suit No. FHC/PH/CS/149/2020, filed by the Attorney-General for Rivers State (plaintiff), against the FIRS (first defendant) and the Attorney-General of the Federation (second defendant).

    The court, which granted all the eleven reliefs sought by the Rivers State Government, stated that there was no constitutional basis for the FIRS to demand for and collect VAT, Withholding Tax, Education Tax and Technology levy in Rivers State or any other state of the Federation

    Pam said the constitutional powers and competence of the Federal Government was limited to taxation of incomes, profits and capital gains, which did not include VAT or any other species of sales, or levy other than those specifically mentioned in items 58 and 59 of the Exclusive Legislative List of the Constitution.

    The judge dismissed the preliminary objections filed by the defendants that the court lacked the jurisdiction to hear the suit and that the case should be transferred to Court of Appeal for interpretation.

    Justice Pam, who also dismissed objection raised by the defendants that the National Assembly ought to have been made a party in the suit, declared that the issues of taxes raised by the state government were the matters of law that the court was constitutionally empowered to entertain.

    He declared that after a diligent review of the issues raised by the plaintiff and the defendants, the plaintiff had proven beyond doubt that it was entitled to all the eleven reliefs it sought in the suit.

    The Court agreed with the Rivers State Government that it was the state and not FIRS that was constitutionally entitled to impose taxes enforceable or collectable in its territory of the nature of consumption or sales tax, VAT, education and other taxes or levies, other than the taxes and duties specifically reserved for the Federal Government by items 58 and 59 of Part 1 of the Second Schedule of the 1999 constitution as amended.

    Donald Chika Denwigwe, SAN (middle) lead lawyer to Government of Rivers State and Ken C.O. Njemanze, SAN (left) briefing journalists after the Federal High Court in Port Harcourt on Monday declared FIRS collection of Value Added Tax in Rivers State unconstitutional.

  • Court voids Finance Minister’s power to amend Taxes, Levies Act

    Court voids Finance Minister’s power to amend Taxes, Levies Act

    A Federal High Court sitting in Lagos Wednesday voided the Minister of Finance’s power to amend the Taxes and Levies (Approved List for Collection) Act 2004.

    Justice Ayokunle Faji held that “any purported amendment” to the Act 2004 by the Minister, “is null, void and unconstitutional.”

    The judge upheld the argument of The Registered Trustees of Hotel Owners and Managers Association that “only the National Assembly can amend laws. No other body can do so.”

    The Attorney-General of the Federation and Minister of Finance were the defendants in the suit.

    The Federal Government through the then Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, on May 26, 2015, amended the Schedule to the Act following pressure to harmonise taxes and levies payable in Nigeria.

    The amendment introduced “a taxing power” to state governments over “inter alia: Hotels, Restaurants or event centres’ consumption tax, where applicable.”

    But The Registered Trustees of Hotel Owners and Managers Association, whose members in Lagos State are charged with the responsibility of collecting consumption tax from its customers on behalf of the government, filed Suit No: FHC/UCS/1082/19, challenging the Minister’s action.

    The judge agreed with plaintiff’s Counsel Mr Salihu Bello that, among others, the amendment “…affects the business of Plaintiff and its members particularly as regards payment of taxes.

    “It affects them directly. It seems to me that they are entitled to challenge a law which seeks to determine the point of payment of tax as regards their business if they think that law is unconstitutional.”

    The judge granted all the plaintiff’s four declarative reliefs.

    Justice Faji held: “By virtue of Section 4 of the Constitution…the legislative powers of the Federal Republic of Nigeria are vested in the National Assembly
    “The Minister of Finance, being a member of the executive arm of government, lacks the constitutional power legislative competence) to amend an Act of the National Assembly or any part thereof.

    “Section 121 of the Taxes and Levies (Approved List for collection Act Cap T2 Laws of the Federation of Nigeria 2004 which vests the Minister of Finance with the power to amend the schedule to the Taxes and Levies Approved list for Collection) Act is inconsistent with the provisions of the Constitution…and therefore, unconstitutional, null and void.

    “Any purported amendment to the taxes and levies (Approved List for collection Act Cap T2 Laws of the Federation of Nigeria 2004 by the Minister of Finance…including but not limited to the ones and Levies (Approved List for collection) Act (Amendment) Order, 2015 is illegal constitutional, null and void.”

  • VIDEO: Ayade breaks down in tears, ‘I came well prepared but haven’t achieved my dreams for C’River in 5 years’

    VIDEO: Ayade breaks down in tears, ‘I came well prepared but haven’t achieved my dreams for C’River in 5 years’

    It was an emotional day at Peregrino House of the Cross River State Government on Thursday when Governor Ben Ayade broke down in tears over the high level of poverty in the state and exempted some persons and organisations from paying tax.

    Speaking at the inauguration of an anti-tax agency headed by Bishop Emma Isong, the governor said that it is sad that government which does not meet the needs of the people in many areas still collects tax from them.

    He said it better for him to “task my brain” than to expect tax from people who are still struggling.The governor said as he went round the state, he noticed the level of poverty which has made some people to stay in mud houses.

    Ayade, who broke down in tears, said: “I never knew that five years as governor, there would still be people living in thatched houses in Cross River. I almost cried because I knew how prepared I was but it didn’t end the way I dreamt for the state. I wish God would intervene because I really wish I could help. It’s very painful.”

  • Don’t increase taxes, Tinubu warns FG

    The National Leader of the All Progressives Congress (APC), Asiwaju Bola Tinubu on Thursday called on the Federal Government to halt further action on the planned increase in Value Added Tax(VAT).

    Tinubu, who spoke at the 11th Bola Tinubu Colloquium to mark his 67th birthday in Abuja, stated that hiking VAT would further impoverished the poor who would bear the brunt of the increase.

    In his submission, the federal Government should widen the tax net and ensure all those Nigerians who had refused to pay their tax were made to do so as a way of raising revenue.

    According to him, increase in VAT would not help the ordinary man in the country, stressing that those in charge of generating revenue for the country must begin to think of other sources of revenue.

    Earlier, Lagos State Governor, Akinwunmi Ambode said that Tinubu with “undoubted political courage’’ spearheaded the ruling party to victory in recent the national elections.

    He said that APC won at the national and state levels.

    Ambode said that Asiwaju Tinubu had been a key to the successes and progress recorded by the current administration.

    Tinubu, he said, was also going to be part of the success of Nigeria in years to come.

    “We are here today to celebrate the coming down.’’

    Vice President Yemi Osinbajo and many other dignitaries attended the colloquium.

    Commenting on “Nigeria’s Industrialisation Policy’’, the Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, unveiled the administration’s plans to spur the country’s industrialisation and growth.

    He listed Eyimba Industrial City, Lekki Modern Industrial Park and Funtua Cotton Cluster as major projects to grow Nigeria.

    The Eyimba city in Abia state, he said, covered 9,500 hectares of land. The master plan has been completed.

    The partners in the project included South Africa, United Arab Emirate, China, African Export-Import Bank.

    He reported that the power project for electricity had been put in place and the zone would create 625,000 jobs.

    The Lekki park is occupying 1,000 hectares of land designed to handle export of manufactured goods. The feasibility study of the zone has been prepared, he said.

    The Funtua cotton cluster, he said would pull more than 8,000 farmers together to restore cotton production and value chain as well as produce feeds for animals and spur textile industry.

    The zone, he said, would attract more than $2 billion investment.

  • Ask questions on how government spend your taxes – Oshiomhole tells Nigerians

    Former Edo Governor, Mr. Adams Oshiomhole has called for a review of Nigeria’s tax laws for an effective tax administration.

    Oshiomole, also a former President, Nigeria Labour Congress ( NLC ), made the call at the 26th Convocation Lecture of the Lagos State Polytechnic (LASPOTECH), Ikorodu.

    The lecture was entitled, “Crisis of Governance, Governance of Crisis: The Role of Education in Nibbling Governance Crisis in Nigeria.”

    He said the Federal Government must put necessary machinery in place to ensure that those who are expected to pay tax do so as and when due for improved infrastructural development of the country.

    Oshiomhole regretted that the only group of people who pay tax regularly are salary earners whose taxes were deducted at source.

    The former governor expressed disappointment that millions of taxable adults had devised means of evading tax.

    “How do we justify tax payment because most people say why do we pay tax when they will steal the money, what are they doing with it? Look at the roads they are bad, ” he said.

    According to him, such statement were mere excuses as the first step to be taken is to pay the tax to get moral and legal right to demand the judicious use of the money by the government.

    Oshiomhole urged the federal government to take a cue from the effective tax system of the Lagos State Government which had devised a means of identifying those who are expected to pay tax and ensure that they comply.

    “The developmental strides and successes recorded in Lagos State is a result of proper tax collection and judicious use of the fund.

    “Government must ensure that those who are at advantage pay their taxes and the fund generated should be used to deliver infrastructure for those who are at disadvantaged and everyone.

    “You can’t expect good roads, water and other social amenities if you don’t pay tax; once you pay then you can begin to probe the authorities and demand accountability for your money, ” he said.

    On the rights of the citizens, Oshiomhole noted that the logic of democracy enables citizens to have not only the weapon to vote once in four years, but to “police and interrogate” those they voted for in between the elections.

    He decried the poor state of the nation’s economy which he blamed on mismanagement of the country’s resources by the previous administration.

    “The manifestation of crisis in Nigeria include but not limited to corruption, failing public schools, security challenges, growing population, among others.

    “While it cannot be established that everybody is involved in corruption, its existence must be recognised by all and fought out of our system.”

    Oshiomhole noted that corruption had affected almost all the sectors of the country, adding that graft was not limited to only those in government.

    According to him, the poor state of infrastructure and absence of basic facilities such as stable power supply, potable water, good roads and functional refineries are caused by corruption.

    On petrol subsidy, the ex-governor he said rather than subsidising petroleum products the government should handover the refineries to competent private investors who would make manage and run them.

    “Rather than to lament and agonize, what we need do is to organize and tackle those things that have brought us down as a nation.

    “As Nigerians we must recognise the problems confronting the country so as to diagnose and prescribe solutions to fix them.

    “The responsibility of leaders is so fix the country rather than join the citizens to lament.

    “When one notices that an environment is oppressive, what is expected of the victim is not to sit down to lament but to devise a way out of the problem,” he said.

    He, however, hailed President Muhammadu Buhari on the war against corruption, saying it recorded remarkable results.

    “The era of impunity of do it and nothing will happen is almost over in Nigeria; this is an era bringing every offender to book no matter their status.”

    Oshiomhole urged Nigerian students to be interested in governance, saying you are the future leaders.

    “You must interrogate power, organise yourself decently and ensure that your leaders are accountable just like the NANS during the military era who demand answers for every action.

    “Unlike the NANS of today who go mute on burning societal issues and are giving awards and giving plaques to government officials and other influential people, ” he said.

    In his remarks, Gov. Akinwunmi Ambode of Lagos State lauded the former governor for honouring the invitation of the state polytechnic and expresses optimism that he would do justice to the lecture.

    Ambode, represented by Dr Abdullateef Abdulakeem, the Commissioner for Home Affairs, described him as a ‘protagonist and an antagonist’.

    He said the role played by Oshiomhole in crisis management as a labour leader and governor negotiating potential issues with government and in government could not be over emphazised.

    The Rector of the institution, Mr Samuel Sogunro, noted that government was all about service delivery and once it fails at any level, the entire society would be affected, stressing the need for transparency in governance.

    Sogunro said education in governance was key and if ignored could lead to crisis in governance because “education is the nation’s bulwark.”

  • Lagosians now pay taxes voluntarily — Ambode

    Governor Akinwunmi Ambode of Lagos State says more residents of the state are now voluntarily paying their taxes and levies to the government, with a positive effect on state revenues.

    Ambode told media executives in Lagos on Thursday that this was partly because the state government was spending money to create tax awareness.

    Aside this, he said that people in the state were also seeing their taxes working for them.

    “Many of them now walk to the Tax Offices on their own, to voluntarily pay their taxes because they have been able to see for themselves what we have been able to do with revenues generated from taxes and levies,’’ the governor said.

    He said that Lagos State had survived mainly on internally-generated revenue ( IGR ).

    “It represents two-thirds of our total revenue.

    “We are trying to make the people of Lagos State to become aware that if they pay more taxes, the state government would be able to do much more for them,’’ Ambode said.

    The governor said that the state government had a monthly wage bill of about N9 billion.

    He recalled that the state government paid out about N700 million as compensation to property owners at Oshodi, and N500 million to those at Abule-Egba.

    “Compensation to property owners around the planned flyover at Pen Cinema, Agege may gulp up to N1 billion.

    “It is not that these property owners have the appropriate documents, but we have just been trying to be humane,’’ the governor said.

    On Lake Rice, which is being sold at N12, 000 per bag, Ambode said that the product was being subsidised, “because it is consumed by all’’.

    “We are only trying to create a paradigm shift,’’ he said.

     

    NAN

  • Only 40 million Nigerians pay tax – Adeosun

    The Minister of Finance, Mrs. Kemi Adeosun has said only 40 million taxable adults in Nigeria pay taxes out of the existing 70 million.

    Adeosun said this at the first annual lecture of the Lagos State Professorial Chair of Tax and Fiscal Matters held at the Ade-Ajayi Auditorium of the University of Lagos.

    Mrs Adeosun who chaired the lecture, said about 13 per cent of the active tax payers have their taxes deducted at source under the Pay as You Earn (PAYE) category.

    She said tax policies cannot be rigid and needed regular reviews so that many more of the 30 million defaulters pay their taxes.

    She said: “I have kept asking why the 30 million people have refused to pay taxes. Another major challenge is the fact that many Nigerians have other sources of income, yet they are only taxed only through the PAYE. Yet, they earn so much from part-time jobs, and extra businesses.”

    According to the minister, new tax policies in the country must capture online businesses, entrepreneurship and others such as the film industry, otherwise regarded as nollywood.

    Mrs. Adeosun, who reiterated the importance of taxation to national development, noted that every developed country has a well developed tax policy and that Nigeria cannot be an exception.

    In his lecture titled: “Policy, Legal and Administrative Imperatives in the Quest for Eradicating Multiplicity of Taxes (MOT) in Lagos State” Prof Abiola Sanni of the UNILAG Law Faculty, lamented the intractable nature of “the phenomenon called multiplicity of taxes in Nigeria despite the effort aimed at addressing it and need to consider fresh interventions from the dimension of tax policy.”

    Sanni said Lagos State had nine tax laws from which the government gets income but a review revealed that only three of them – hotel occupancy and restaurant law, land fees and land use charge, and wharf landing fees law are currently been administered in the state.

    He further said the Federal Government should admit that an important aspect of Value Added Tax (VAT) on intra-state supply of goods and services was within the taxing powers of states and should be allowed to use it.