The Minister of Finance, Mrs. Zainab Ahmed has hinted that Nigerians may be greeted with the introduction of new taxes and levies as the year 2022 sets in, saying is part of the federal government economic recovery package. The Minister made this disclosure during the public hearing on the 2021 Finance Bill organise by the house of Reps Committee on Finance today in Abuja. Ahmed said a couple of reforms and amendments have been recommended in a finance amendment bill which is set to be unleashed on Nigerians in mid-2022.
Negative public reaction has continued to pour in since the federal government announced its intention for the total removal of fuel subsidy by mid-next year which is still receiving public scrutiny.
The Minister added that modest changes have been set though, but more fiscal reform is still under consideration as the Ministry could not entertain all the proposals it received from stakeholders.
In her statement, “Our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments,”
Although, she revealed the litigations against the federal government on Value Added Taxes (VAT) and Stamp duty are still undergoing court proceedings and that necessitated the ministry to stay clear of that.
She expressed optimism that by mid-next year, she hopes the cases could have been dispensed and it will be set to be taken to the lawmakers for its consideration.
The minister explained that “We prepared this draft bill along with 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 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.
According to her “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 ease of doing business policy.
She, therefore, said NASENI doesn’t need to go out instead the FIRS will do that for them and to be remitted later.
The Minister said these are part of the reforms President Buhari informed Nigerians during his year 2022 budget presentation.
In his contribution, the Speaker House of Reps, Femi Gbajabiamila, revealed that the 2021 Finance Bill seeks to introduce strategic and broadminded, positive reforms that will engender best practices and guarantee the interest of the investing public and businesses.
The speaker added that the bill seeks to statutorily check borrowing by local, state, and Federal Governments, enhance transparency and accountability in the administration in various strata of tax and public revenue generation.
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