The Federal government says Nigerians would pay more taxes across board next year through the provisions of the new Finance Bill.
It is also seeking to empower the Federal Inland Revenue Service (FIRS), to collect all Trust Fund levies from companies and agencies in the country through the provisions of the bill.
The minister of Finance, Zainab Ahmed while speaking at the public hearing on the bill in the House of Representatives .
She explained that the bill was drafted with inputs from relevant government agencies including the Federal Inland Revenue Service and the Debt Management Office in line with global best practice with intention to increase revenue and reposition SMEs with several reforms to boost the economy.
The finance bill,she added, is expected to guide the implementation and execution of the 2022 budget.
She said:”It was done in line with global best practices to increase revenue and reposition SMEs with strong reforms to boost the economy.We prepared this draft bill along with five reform areas, the first is 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”, she said.
She emphasized the need to revisit the antiquated stamp duties and capital gains tax for holistic reform by the parliament.
“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 also 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.
“As I speak, 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.
“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,” she stressed
James Faleke, while welcoming stakeholders to the public hearing assured that their contributions to the finance bill was important for the success of the 2022 budget implementation.
He said the finance bill comes with the yearly budget to enable a full and comprehensive execution to meet the aspiration of both government, the citizens and the economy in general.
