House Considers Finance Bill Report

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A cross section of members during plenary

Adedayo Akinwale ín Abuja

The House of Representatives has considered the report of the Committee on Finance on a Bill for an Act to Amend the Companies Income Tax Act, Value Added Tax Act, Customs and Excise Tariff.

The bill also included the review of Personal Income Tax, Capital gains Tax, Stamp Duties, Petroleum Profit Tax.

The report was laid on the floor of the House by the Chairman of the Committee, Hon. James Faleke, at the plenary yesterday.

Also, the Chairman, House Committee on Media and Public Affairs, Hon. Benjamin Kalu, during the weekly press briefing yesterday confirmed that Nigerian Postal Commission (NIPOST) has been stripped from the responsibility collection of N50 Stamp Duties and transferred it to Federal Inland Revenue Service (FIRS).

The House also approved the increase of VAT from five per cent 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.

The bill also provides that 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.

The bill stipulates that non-resident company is also under the obligation to be taxed on the 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.

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 for the first month, N25,000 for each subsequent month of default.

On the amendment to the Customs and Excise Tariff, etc (Consolidation), Act, the House empowered Nigeria Customs to impose a 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.

The bill also provides that goods imported and those manufactured in Nigeria shall be charged with duties of Excise at the specified rates in the Duty Column.