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Tinubu sends Bill to NASS to consider increase in VAT from 7.5% to 10% by 2025
The National Assembly is considering a bill proposing an increase in the value-added tax (VAT) from 7.5 percent to 10 percent.
VAT refers to a consumption tax on goods and services levied at each stage of the supply chain where value is added.
In the executive bill the national assembly is seeking to raise the tax rate to 10 percent by 2025.
The legislature also intends to increase the VAT to 12.5 percent by 2026 through 2029, according to the document.
VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10%; (b) 2026, 2027 2028 and 2029 years of assessment 12.5% (c) 2030 year of assessment and thereafter 15%,” the document reads.
On May 8, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, had said the VAT rate needs to be increased.
Reacting to the recommendation on September 8, Atiku Abubakar, former vice-president criticised the proposed VAT hike, describing it as a “regressive and punitive policy”.
However, Wale Edun, minister of finance, on September 9, said the VAT rate has not been unchanged.
In February 2021, the International Monetary Fund (IMF) had advised the federal government to raise the VAT rate to at least 10 percent by 2022.
CIT TO BE REDUCED TO 27.5% BY 2025
Meanwhile, the bill also proposes a reduction in the corporate income tax (CIT) to 27.5 percent by 2025 — down from 30 percent — and a further cut to 25 percent by 2026.
Companies with less than N20 million turnover are exempted from paying the CIT, according to the bill.
Tax shall be levied, for each year of assessment in respect of total profits of every company, in the case of; (a) a small company, at zero percent; and (b) any other company, at the rate of-(i) 27.5% in 2025 year of assessment, and(ii) 25% from 2026 year of assessment,” the document added.
“Notwithstanding any provision of this Act or any other enactment, where, in any year of assessment, the effective tax rate of a company is less than 15%, such company shall recompute and pay an additional tax that makes its effective tax rate equal to 15%.
“The provisions of this section shall apply to (a) a company that is a constituent entity of an MNE group; and (b) any other company with an aggregate turnover of N20,000,000,000.00 and above in the relevant year of assessment.
“The companies covered under this section and the determination of the additional tax payable shall be in accordance with regulations issued by the Service.”
On June 4, Oyedele had said the presidential committee on fiscal policy and tax reforms proposed a reduction of the CIT by 5 percent.
He said the tax rate should drop from 30 percent to 25 percent to encourage businesses and investors.
Credit source: Cable excluding headline
News
‘Putin waiting to meet me as soon as possible’ to end Ukraine war – Trump
The US President-elect took to the stage AmFest in Phoenix to talk about his contact with the Russian leader.
He told the crowd: “President Putin has said he want to meet with me as soon as possible.”
Trump went on to brand the war “horrible” and stated it needed to end. It is not known whether or not this meeting will take place in person. His comments at the event in the US come as Putin met with another world leader.
Putin held talks in the Kremlin today (December 22) with Slovakia’s prime minister, Robert Fico, in a rare visit to Moscow by an EU leader since Russia’s all-out invasion of Ukraine in February 2022.
Fico arrived in Russia on a “working visit” and met with Putin one-on-one. Kremlin spokesman Dmitry Peskov told Russia’s RIA agency that the talks would focus on “the international situation” and Russian natural gas deliveries.
Visits and phone calls from European leaders to Putin have been rare since Moscow sent troops into Ukraine, although Hungary’s PM Viktor Orban visited Russia in July. Orban’s visit drew condemnation from Kyiv and European leaders.Fico’s views on Russia’s war on Ukraine differ sharply from most other European leaders. The Slovakian PM returned to power last year after his leftist party Smer (Direction) won parliamentary elections on a pro-Russia and anti-American platform. Since then, he has ended his country’s military aid for Ukraine, hit out at EU sanctions on Russia, and vowed to block Ukraine from joining NATO.
News
JUST IN: Speed Darlington Granted Bail, Says Lawyer
Stanley Alieke, the counsel for popular controversial rapper, Darlington Achakpo, aka Speed Darlington, said the singer has been granted bail after nearly a month in police custody.
Alieke disclosed this on his Instagram handle on Monday.
“Apki has been granted bail by the court,” he wrote without including much information.
The rapper was arrested on November 27 while performing at a show in Owerri, Imo State.
His arrest was connected to an alleged abuse of Afrofusion star, Damini Ogulu popularly known as Burna Boy.
Darlington’s counsel, Deji Adeyanju also confirmed that Burna Boy was responsible for his arrest.
Darlington had taunted Burna Boy over his affiliation with the embattled United States rapper Sean ‘Diddy’ Combs who is facing multiple charges for sexual exploitation and human trafficking.
This prompted his first arrest. On his arrival, Speed Darlington swore never to back down on calling out the Grammy award winner because of his association with the embattled Diddy.
Earlier, Darlington’s lawyer, Adeyanju said that the singer would be arraigned within 48 hours or be released on bail.
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“Our FREP application for Speed Darlington a.k.a has been granted by the court. He is to be arraigned within 48 hours or released. Issues around injustice may take time but justice will always prevail,” he wrote.
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Police Arrest Herbalist, 3 Others For Beheading Delta Resident, Dump Him In River
Operatives of the Delta State Police Command have arrested no fewer than four suspects for allegedly killing a man identified as Paulinus Okon over N30million business deal in Delta State.
It was learnt that the deceased was earlier declared missing and was later beheaded on the 8th of September 2024 at Otokutu area of the state.
Paulinus’ body was said to have been thrown into the river, while one of the suspects, a herbalist, took the head and buried it at his shrine in Otokutu.
The state Commissioner of Police, CP Olufemi Abaniwonda during a press briefing on Monday, identified the suspects as Okeimute Gaga, Efe Onoitiyi, Sunday Ikpeba, and a 30yrs old herbalist known as Lawrence Joseph.
The statement reads in part; “It involves the murder of one Paulinus Okon ‘m’ by his bosom friend One Efe Onoetiyi. Paulinus was reported missing on 8/9/2024 by his brother after he went out with his friend Efe Onoitiyi ‘m’ age 30yrs.
“The suspect Efe Onoitiyi who initially denied knowing what happened to Paulinus came to Paulinus’s house to ask his family of Paulinus, he was confronted that the deceased went out with him on that same date which he denied that the deceased did not go out with him.
“On a later date, Efe came back and demanded Five Hundred Thousand Naira (N500,000) from the deceased’s brother that he would use the money to pay a herbalist who can tell them Paulinus’s whereabouts.
“Efe again came and informed the family that Paulinus was kidnapped and he collected a ransom of about twenty million, seven hundred and fifteen thousand naira (N20,715,000) from the deceased brother claiming that he was in touch with the kidnappers. When it became obvious that Efe had something to hide, he was arrested and the case was transferred to the State Criminal Investigation Department (SCID) State Headquarters, Asaba.
“On 28th November 2024, I directed the DPO Ekpan to take over the case and ensure that a discrete investigation is carried out to fish out those responsible as the main suspect Efe was not yielding.
“The DPO Ekpan carried out an intelligence led investigation that indicted one Okeimute Gaga ‘m’ aged 48yrs old. Okeimute gaga upon his arrest opened up and confessed that he could no longer hide what happened. Okeimute Gaga narrated how Efe brought Paulinus to Orere River in Otokutu and requested that they kill him.
“The suspect further stated that on the 8th of September 2024 himself, Efe and Sunday Ikpeba, and a 30yrs old herbalist known as Lawrence Joseph tied Paulinus Okon to a stake at night close to Orere River and beheaded him alive. His body was thrown into the river while the herbalist took the head of Paulinus and buried him at his shrine in Otokutu. The DPO Ekpan Police station led police operatives to the shrine in Otokutu where the skull of Paulinus was exhumed and recovered.
“During interrogation, Efe was asked why he killed his friend Paulinus, Efe stated that he saw a building for sale at a cost of thirty million naira (N30,000,000) which he advertised to the deceased and the deceased paid him Thirty Million Naira (N30,000,000) in three instalments, but instead of buying the house, he diverted the money for his personal use, bought two lands and was building a duplex for himself.
“He further stated that he did not know how to explain to the deceased that he had used his money hence he decided that killing him will save him the trouble. Efe and the three other suspects are in custody.”
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