Nigeria Finance Bill to Streamline Tax Laws, Minister Ahmed Says

Nigeria Finance Bill to Streamline Tax Laws, Minister Ahmed Says

By Bashir Olanrewaju

Nigeria plans to reform several tax laws in order to streamline payments and collection and boost government revenue, Finance Minister Zainab Ahmed said.

Five broad areas have been identified to improve domestic revenue, tax administration and legislative amendments, international taxation, tax equity and public financial management Ahmed said at a hearing on the 2021 Finance Bill on Monday in the House of Representatives.

The amendments proposed will affect the Capital Gains Tax Act, the Company Income Tax, the Federal Inland Revenue Establishment Act, the Personal Income Tax Act, the Stamp Duties Act,Tertiary Education Tax Act and the Value Added Tax Act, according to the minister.

Finance Minister Zainab Ahmed

“Also, it is to streamline the tax and the levy collection from the Nigerian companies in line with Mr. President’s ease of doing business policy,” Ahmed said.

President Muhammadu Buhari’s government is increasingly relying on tax revenue to fund government activities in the face of dwindling revenue from crude oil exports, for long the economy’s lifeblood.

More amendments will likely be introduced in the law next year, after current court cases challenging the implementation of value-added tax and stamp duties are disposed of.

“Our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments,” the minister said.