Business

2020 finance bill gets special Senate action, passes 1st, 2nd reading

Published

3 years ago

December 2, 2020

The 2020 finance bill seeking to reduce import levy on buses, tractors and other motor vehicles has passed first and second reading at the Senate.

The proposed law passed first and second reading on Wednesday after the senators gave it a special consideration.

A letter by President Muhammadu Buhari asking the National Assembly to pass the bill was only read on the floors of the House of Representatives and Senate on Tuesday.

Normally, when a bill is read for the first time, a day is fixed to debate the general principles of the legislation after which it will be passed for second reading.

But the Senate Leader, Yahaya Abdullahi, on Wednesday said special consideration should be given to the bill because of its importance to the economy.

He said the legislation was seeking to “provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two consecutive years of assessment.”

The senate leader said the bill was also seeking to amend the procurement act to implement key procurement reforms previously proposed by the national assembly in 2019.

“The Capital Gains Tax Act is amended at section 36(2) of the CGTA to the extent that exemption on tax liability for compensation for loss of office which was hitherto limited to N10, 000.00 is now extended to N10, 000, 000.00,” he said.

“There is a new section 32 which provides that no tax shall apply to any trade or business transferred to a Nigerian company for the purposes of better organization of that trade or business.

“Section 4 of the Value Added Tax (VAT) act has been amended by increasing the value added tax payable by consumers from 5% to 7.5%. Section 19 increased the penalty payable by a taxable person for non-remittance within the specified period from 5% to 10%.

“Under section 28, the penalty for failure to give notice of change of address or permanent cessation of business was increased from N5,000 to N 50,000 in the first month and N25,000 in subsequent months.

“There is a new section 8 of the VAT Act to cater for the registration of a taxable person upon commencement of business.

“The penalty for failure to register has been increased from N10,000 to N50,000 in the first month and from N 5,000 to N 25, 000 in the subsequent months.”

Yahya also said the bill sought to boost the Small and Medium Enterprises by reducing their tax burden.

However, Ike Ekweremadu, senator representing Enugu west, was opposed to the bill being hurried.

“It is important that we put it to a public test and see what the Nigerian people will say. We must ensure that the people of Nigeria are carried along,” he said.

The bill passed second reading after it was put to a voice vote by Senate President Ahmad Lawan.

Business

FG suspends VAT on diesel to avert workers strike

Published

3 hours ago

October 2, 2023

Trends Admin

FG suspends VAT on diesel to avert workers strike

The Federal Government has suspended the value-added tax (VAT) on diesel for the next six months.

This was part of the decisions taken with leaders of the organised labour at a meeting on Sunday.

The move is meant to avert a nationwide workers’ strike over the impact of the removal of the petrol subsidy.

The labour unions involved in the four-hour meeting held at the State House Abuja on Sunday are the Nigeria Labour Congress (NLC) and Trade Union Congress (TUC).

President Bola Tinubu’s Chief of Staff Femi Gbajabiamila said the government team and the labour leaders had agreed on the matter.

This was confirmed in statement by the Minister of Information and National 0rientation, Mohammed Idris.

It also said the FG was “committed to fast-tracking the provision of compressed natural Gas (CNG) buses to ease public transportation difficulties associated with the removal of PMS subsidy”.

Gbajabiamila said the government would see to the provision of funds for micro and small-scale enterprises, adding that the value-added tax (VAT) on diesel will be waived for the next six months.

“The Federal Government will commence payment of N75,000 to 15 million households at N25,000 per month, for a three-month period from October-December 2023,” the statement reads.

“A sub-committee is to be constituted to work out the details of implementation of all items for consideration regarding government interventions to cushion the effect of fuel subsidy removal.

“NLC and TUC will consider the offers by the Federal Government with a view to suspending the planned strike to allow for further consultations on the implementation of the resolutions above.”

Labour leader speaks

Speaking to journalists, after the parley, President of the NLC, Joe Ajaero, said the labour groups would take all the promises by the government to its organs for consideration.

Business

FG, states, LGs get N1.1tn as August allocation

Published

2 days ago

September 30, 2023

Trends Admin

The Federation Account Allocation Committee (FAAC) has shared a sum of N1.1 trillion to the Federal Government, states and local government areas as August 2023 federation account revenue.

A statement issued on Friday and signed by Director (Press and Public Relations) Office of the Accountant General of the Federation (OAGF), Bawa Mokwa, said the balance in the Excess Crude Account (ECA) was $473,754.57.

According to Bawa, a communique issued by the FAAC at its September, 2023 meeting indicated that the N1100.101 billion total distributable revenue comprised distributable statutory revenue of N357.398 billion, distributable Value Added Tax (VAT) revenue of N321.941 billion, Electronic Money Transfer Levy (EMTL) revenue of N14.102 billion, Exchange Difference revenue of N229.568 billion and Augmentation of NN177.092 billion.

In the communique, total revenue of N1.483 trillion was available in the month of August 2023.

Total deductions for cost of collection was N58.755 billion, total transfers and refunds was N254.046 billion and savings was N71.000 billion.

Gross statutory revenue of N891.934 billion was received for the month of August 2023. This was lower than the N1,150.424 billion received in the month of July 2023 by N258.490 billion.

The gross revenue available from the Value Added Tax (VAT) was N345.727 billion. This was higher than the N298.789 billion available in the month of July 2023 by N46.938 billion.

The communique stated that from the N1,100.101 billion total distributable revenue, the Federal Government received a total of N431.245 billion, the State Governments got N361.188 billion and the Local Government Councils went home with N266.538 billion.

A total sum of N26.473 billion (13% of mineral revenue) and N14.657 billion (13% of savings from NNPCL), were shared to the relevant States as derivation revenue.

From the N357.398 billion distributable statutory revenue, the Federal Government received N173.102 billion, the state governments got N87.800 billion and the Local Government Councils pocketed N67.690 billion.

The sum of N14.446 billion (13% of mineral revenue) and N14.361 billion (13% of savings from NNPCL) were shared to the relevant States as derivation revenue.

The Federal Government got N48.291 billion, the State Governments received N160.971 billion and the Local Government Councils went home with N112.679 billion from the N321.941 billion distributable Value Added Tax (VAT) revenue.

The N14.102 billion Electronic Money Transfer Levy (EMTL) was shared as follows: the Federal Government pocketed N2.115 billion, the State Governments got N7.051 billion and the Local Government Councils received N4.936 billion.

The Federal Government received N114.445 billion from the N229.568 billion Exchange Difference revenue; State Governments received N58.048 billion, and the Local Government Councils got N44.752 billion.

The sum of N12.027 billion (13% of mineral revenue) and N0.296 billion (13 % of savings from NNPCL) went to the relevant States as derivation revenue.

From the N177.092 billion Augmentation, the Federal Government received N93.292 billion; the State Governments got N47.319 billion, and the Local Government Councils pocketed N36.481 billion.

In the month of August 2023, Value Added Tax (VAT), Import and Excise Duties and Electronic Money Transfer Levy (EMTL) increased considerably while Petroleum Profit Tax (PPT), Companies Income Tax (CIT), Oil and Gas Royalties recorded significant decreases.

Railway

Subsidy: NRC to introduce Apapa (Lagos)-Kajola (Ogun) express train

Published

4 days ago

September 28, 2023

Trends Admin

Subsidy: NRC set to introduce Apapa (Lagos)-Kajola (Ogun) express train

The Nigerian Railway Corporation says it will soon introduce a mass transit express passenger train between Apapa in Lagos and Kajola in Ogun State.

The action is part of the Federal Government’s palliative measures to cushion the effect of the petrol subsidy removal on the citizens, according to a statement by the NRC.

The statement obtained on Thursday and signed by the NRC’s Deputy Director Public Relations Yakub Mahmood, quoted Director Operations of the corporation, Akin Osinowo, as giving the details of the new train service on behalf of the Managing Director, Fidet Okhiria.

Code-Named Apapa Express Train, he said the Apapa-Kajola express train would run on the standard gauge railway line.

He gave the stopping stations for the express train as Mobolaji Johnson, Agege, Agbado and Kajola.

He further said the train service would reduce the hardship being experienced by commuters especially those plying Apapa-Kajola route.

Osinowo appealed to all train passengers to ensure that they obtain tickets at the designated stations before boarding the train.