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Published On: Fri, Nov 29th, 2019

Reps okays finance bill, provide incentives for agrobiz

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By Christiana Ekpa

The House of Representatives yesterday kept to its promise by passing the finance bill, through third reading.
The report of the committee on finance on the bill, was laid yesterday and considered immediately at the committee of the whole.
The bill include: the review of the Companies Income Tax Act, Value Added Tax, Customs and Excise Tarriff, Personal Income Tax, Capital gains Tax, Stamp Duties, Petroleum Profit Tax, respectively.
Chairman of the House committee on media and public affairs, Hon. Benjamin Kalu confirmed that Nigerian Postal Commission (NIPOST) has been stripped of the responsibility of collecting N50 stamp duties and transferred it to Federal Inland Revenue Service (FIRS).
The N50 one-off stamp duties however exempts all electronic receipt or transfer for money deposited in any bank or with any banker, on any type of account, to be accounted for amounting from N10,000 upwards, except that monies paid into one’s account or transferred electronically between accounts of the same owners by the owner within the same bank.
In the passed finance bill, the House also approved the increase of VAT from 5% to 7.5% on services rendered in Nigeria regardless by a person physically present or not, as well as services rendered within Nigeria or outside.
On the sanction, the bill provides that: a taxable person who fails or refuses to register with FIRS within the time specified in the bill shall be liable to pay N50,000 fine foe the first month, N25,000 for each subsequent month of default.
“Where a taxable person permanently ceased to carry on a trade or business in Nigeria, the taxable person shall notify the Service of its intention to deregister for tax purposes within 90 days of such cessation of the trade or business.
“Nonresident company is also under obligation to be taxed on invoice for the supply of taxable services while the person to whom the services are supplied in Nigeria shall withhold and remit tax directly to the Service in the currency of payment.
“Any taxable person who fails to notify the Service of a change of address of business or trade shall be liable to fine of N50,000 for the first month and N25,000 for subsequent month of default.
“Any taxable person who fails to submit returns shall be liable to a fine of N50,000 for the first month and N25,000 for subsequent month of default”
On the amendment to the Customs and Excise Tarriff, etc (Consolidation), Act, the House empowered Nigeria Customs to impose duty on “goods manufactured in Nigeria and specified in the Fifth Schedule to this Act shall be charged with duties of Excise at the rate specified under the Duty Column.

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