Connect with us

News

Just in: Tinubu Alters 1977 Nigeria Tax System, Approves New Tax Policy

Published

on

By Kayode Sanni-Arewa

President Bola Tinubu has altered the 1977 Nigeria Tax System and approved a new withholding tax policy for the country. This major change was disclosed by Taiwo Ayodele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, on Tuesday.

*1977 Nigeria Tax System.*

The 1977 Nigeria Tax System, which introduced withholding tax as an advance payment of income tax on specified transactions, aimed to provide regular revenue flow for the government and curb tax evasion. However, this system posed several challenges, particularly for farmers and Small and Medium Enterprises (SMEs).

Advertisement

*New Withholding Tax Policy.*

Ayodele highlighted that the new withholding tax policy addresses the heavy burden imposed by the previous system on these groups. Key issues of the old regime included ambiguities about compliance requirements, eligible transactions, applicable rates, timing of remittance obligations, and difficulties in obtaining refunds for excess withholding tax. The structure of the old regime promoted tax inequity and added to the cost of doing business.

*Key Changes in the New Policy.*

The new withholding tax policy, approved by President Tinubu, will be published in the official gazette in the coming days. The key changes include:

Advertisement

*Exemption of Small Businesses* : Small businesses are now exempt from Withholding Tax compliance.

*Reduced Rates:* Businesses with low margins will benefit from reduced withholding tax rates.

*Exemptions for Manufacturers and Producers* : Farmers and other manufacturers are exempt from withholding tax.

*Measures to Curb Evasion:* Enhanced measures to minimize tax avoidance and streamline the process of obtaining credit and utilizing tax deducted at source.

Advertisement

*Reflecting Emerging Issues* : The policy adopts global best practices, addresses emerging issues, and provides clarity on the timing of deductions and definitions of key terms.

These reforms aim to ease the cost of compliance for taxpayers, improve the business environment, and promote tax equity.

The approval of the new withholding tax policy marks a significant step towards a more equitable and efficient tax system in Nigeria. By addressing the shortcomings of the 1977 Nigeria Tax System, the new policy aims to create a more favorable environment for businesses, particularly SMEs and manufacturers.

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

News

I Can’t Feed My Family Again; I Make N20,000 Daily But Spend N17,000 On Fuel — Taxi Driver Laments

Published

on

Despite earning N20,000 daily, Ajibaye says he takes home only N3,000 after fuel expenses, leaving him unable to cater to his children and wife.

A commercial driver identified as Wahab Ajibaye based in Ilorin, Kwara State has expressed frustration over the rising fuel prices, saying it has left him struggling to provide for his family.

Despite earning N20,000 daily, Ajibaye says he takes home only N3,000 after fuel expenses, leaving him unable to cater to his children and wife.

He said: “I am buying fuel for N1100 and I make N20,000 (daily) but I take only N3,000 with me to my house (after work). I am the owner of my car but I am no longer making enough to cater to my children and my wife. The All Progressives Congress (APC) government will not end well. Nigeria is becoming worse and we pray God takes away this set of current leaders.”

Advertisement

Ajibaye blamed the ruling APC government for the hardship faced by Nigerians, saying, “Their government is bringing more suffering. They’re not ashamed, despite many Nigerians cursing them. They should rethink.”

The ruling All Progressives Congress (APC) had recently agreed that the policies initiated by President Bola Tinubu resulted in growing economic hardships in Nigeria.

The party in a statement issued by the party’s National Publicity Secretary, Barrister Felix Morka had said this, while responding to a former national vice chairman (North West) of the party, Salihu Mohammed Lukman.

Recall that Lukman had berated the party for bad governance, adding that former President Muhammadu Buhari and incumbent President Bola Ahmed Tinubu have failed to deliver on their campaign promises.

Advertisement

Lukman, therefore, urged opposition leaders to unite and work hard to defeat the APC-led government in 2027.

But reacting, Morka in a statement on Tuesday argued that President Tinubu was taking bold measures to reset the country’s “long broken economy”, explaining that his reforms had increased economic hardship in the country.

Continue Reading

News

LASG shuts down Idera market over ‘environmental pollution

Published

on

By Kayode Sanni-Arewa

The Lagos State Environmental Sanitation Corps (LAGESC) says it has sealed off the Idera market in the Oshodi metropolis.

In a statement on Thursday, Ajayi Lukman, LAGESC spokesperson, said the agency sealed the market due to unhygienic practices and indiscriminate dumping of refuse, which contravened the environmental law of the state.

He said the measure was taken to enforce adherence to environmental cleanliness across registered markets in the state.

Advertisement

‘‘Our operatives stationed across the Oshodi division during routine market monitoring identified the filth, unhygienic practices, and indiscriminate dumping of refuse around the Idera Market area, which prompted us to seal off the market until further notice,” the statement reads.

Lukman quoted Olaniyi Cole, the corps marshal of the agency, as decrying the level of hygiene at the market, which could lead to an outbreak of diseases.

He said Cole frowned at the inability of the market leadership to provide a valid waste collection contract, which resulted in the heaps of refuse in the facility.

He added that the display of wares for sale on road setbacks, lay-bys, medians, verges, kerbs, street trading, and hawking remained banned in the metropolis.

Advertisement

The LAGESC corps marshal reiterated the ban on the sales, distribution, and usage of styrofoam in the state, noting that anyone found culpable would be punished decisively.

Continue Reading

News

Hours to Edo guber polls, major opposition candidate crumbles structure for Ighodalo

Published

on

By Kayode Sanni-Arewa

Hours to the Edo State governorship election, the guber candidate of the All Peoples Party (APP)Amb Osalumese Areloegbe on Thursday morning collapsed the structure for the governorship candidate of the Peoples Democratic Party (PDP), Dr. Asue Ighodalo and his running mate, Osarodion Ogie Esq.

Addressing journalists at the party secretariat in Benin City, Areloegbe said his decision to collapse the structure for the PDP candidate was because he believed that Ighodalo had all it would take to govern the state to greater heights.

According to him, I urged all my followers and supporters to disregard any information that I have aligned with the All Progressives Congress (APC) governorship candidate, Senator Monday Okpebholo.

Advertisement

“I am supporting Asue Ighodalo because he is competent, not that I am not competent but I believe Asue is on the forefront. That is my reason for supporting his candidacy.

“My party is aware because they have been having a series of negotiations for us to align with the APC, and I told them categorically that I am supporting PDP. My eighteen local government followers are in full support of my decision, I mean 100 per cent supporting the PDP candidate, Barr. Asue Ighodalo and his running mate, Barr. Osarodion Ogie in this election.

“My choice for Asue Ighodalo is because, apart from myself, I see him as the next better candidate that I can support and I can put my weight on because he has the capacity, mentally, physically and otherwise to pilot the affairs of Edo State to greater heights.

“The national secretariat of my party, APP – they are in Abuja and I am in the state, and know much more of what is happening in Edo State. They are not here and don’t know what is going on here in Edo. And I am in a position to tell them what will be better for the Edo people.

Advertisement

“There is a parable that says, ‘You cannot shave a man’s head when he is not present’. I am here in Edo State and I know who to support and why I am supporting him. The national leadership might have taken a different tone, but this is what I and my followers have chosen.

“We had a series of other politicians who had made such decisions before. That is why I agreed with the support of my supporters to collapse my structure for the governorship candidate of the PDP Barr. Asue Ighodalo and his running mate, Barr. Osarodion Ogie.”

Continue Reading

Trending

Copyright © 2024 Naija Blitz News