News

FG can retain VAT as it is – Oyedele

Published

2 days ago

January 6, 2025

The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has said it is possible for the current Value Added Tax structure to be kept as it is given the controversies it had stirred.

Oyedele said this on Sunday when he appeared on a live television programme on Arise TV to discuss the tax reforms proposed by President Bola Tinubu.

In October 2024, Tinubu introduced four Tax Reform Bills to the National Assembly to overhaul Nigeria’s tax system. The Bills – the Nigeria Tax Bill 2024, the Tax Administration Bill, the Nigeria Revenue Service Establishment Bill, and the Joint Revenue Board Establishment Bill – were to consolidate existing tax laws, streamline tax administration, and enhance revenue generation.

The proposed legislation has faced stiff resistance from various players in the country, as people argue that it would favour one section of Nigeria at the expense of others. Proposed reforms to the Value Added Tax were one of the main grief points.

Speaking on Sunday, Oyedele said what his committee proposed regarding Value Added Tax would benefit every part of the country.

He, however, noted that if the preference was for the current state, then his team was willing to oblige.

“There were two comments that Mr President made. His first point is that we have to do tax reforms. We cannot continue with the laws of the colonial era and hope that Nigeria will become a developed country. This tax system is holding us back. Then after a few other questions, someone asked a question again about whether he was willing to move and make a compromise, and he said, ‘Yes’. So his point is that we have to carry out tax reform.

“That is what is non-negotiable, otherwise, we will be missing out on a significant opportunity to move Nigeria forward. But in terms of the details of those bills, everything is up for grabs. I can tell you, as we speak today, if they want us to keep the current VAT formula, we’ll keep it 100 per cent. So, the fact that people keep using the problem we are trying to solve against us, is what I need to understand.

“We are saying today that Lagos State is getting the benefit for calls made in Kano, Kwara, in Ekiti. We say, let’s change that. And then you come out and say they want to take what we are doing in Kano to Lagos,” he said.

The tax reforms committee boss tracing the history of the VAT in Nigeria said, “It seems to me that the more we explain it, the more people try not to understand because a lot of people don’t even understand the current position of the law.

“Let me quickly explain what the problem is, the value-added tax was introduced in 1993 by the military. Implementation started in 1994 and that was to replace the sales tax that was being done by states.”

Oyedele stated that in 1999 when Nigeria got into the Fourth Republic, the country needed a constitution.

“The people that put the Constitution together pretty much replicated 1979’s. In 1979 there wasn’t VAT. So in 1999 when they introduced the constitution, VAT was missing, but the government continued to collect VAT. Some states like Rivers State and Lagos State are in court saying that VAT should be collected by the state because they feel that they are not getting enough for the contribution they are making into the VAT pot, and therefore if they collect it as a state tax, they will be better off.

“That is the equivalent of 100 per cent derivation. For us, as we’re working on these tax reforms. We said if we get states to start collecting VAT in Nigeria, it will be chaotic for business because we know for a fact that states in Nigeria will not respect input-output.

“So we said, how can we make everybody at least comfortable and address inequity? What did we identify? As of today, when companies remit their VAT, they tend to remit from their head office because that’s where they have the finance department. So MTN, BUA, Dangote, Airtel, all the banks, most of them are headquartered in Lagos. Some of the oil companies are headquartered in Rivers State,” he stated.

Oyedele affirmed that the tax reforms became important seeing that there was no VAT in the Nigerian constitution.

He went on to warn that if the tax reform bills were withdrawn from the National Assembly, it would be hard to represent them as he feared that consultations would be frustrated.

Related Topics:chairman FG Nigeria Nigerian Tinubu

Up Next

Bandits kill Miyetti Allah leader, months after abducting predecessor

Don't Miss

How kidnappers tortured us in Imo – Rescued victims

Click to comment

News

Ex- US president, Jimmy Carter lies in state after solemn Washington procession

Published

4 hours ago

January 8, 2025

Naijablitznews

The body of the former United States President was transferred to the US Capitol on Tuesday in a grand and solemn military ceremony, where it will lie in state until a national funeral later this week.

Carter, who passed away on December 29, 2024, at 100, served as the 39th president from 1977 to 1981.

He was widely celebrated for his post-presidential humanitarian efforts, which earned him the Nobel Peace Prize in 2002.

His body arrived at the snow-dusted Capitol following a ceremonious journey from his hometown of Plains, Georgia.

Hundreds gathered as Carter’s flag-draped casket was carried atop a gun carriage during a funeral procession down Pennsylvania Avenue, retracing the opposite route he took during his 1977 inauguration parade.

“I paid my respects to President Jimmy Carter as he lies in state in the US Capitol Rotunda today,” US Defense Secretary Lloyd Austin posted on X (formerly Twitter). “On behalf of the entire Department of Defense, we join the Carter family and all Americans in celebrating this extraordinary life, legacy, and service to our nation.”

Carter’s arrival in Washington began with a flight aboard a presidential US Air Force jet.

The procession from the US Navy Memorial to Capitol Hill included hundreds of US service members and was a nod to Carter’s military service as a submariner.

At the Capitol Rotunda, a short service was held, attended by Carter’s family, congressional leaders, Vice President Kamala Harris, and Chief Justice John Roberts. Carter is now the 13th US president to lie in state at the Capitol, following a tradition that began with Abraham Lincoln in 1865.

Jimmy Carter lying in state 4
The timing of the ceremony carried additional symbolism, as it took place one day after the anniversary of the January 6, 2021, Capitol riot. This year, Congress certified President Joe Biden’s reelection without incident, under heavy security.

A state funeral service will be held Thursday at the Washington National Cathedral. President Biden, who considered Carter a close friend and political ally, is set to deliver the eulogy. All four living former presidents—Bill Clinton, George W. Bush, Barack Obama, and Donald Trump—are expected to attend.

Jimmy Carter lying in state 2
Biden has declared Thursday a national day of mourning, closing federal offices and ordering flags flown at half-staff for 30 days, a tradition that will continue through the presidential inauguration later this month.

Carter, the first US president to reach 100 years of age, spent his final years in hospice care in Plains, Georgia. He will be laid to rest there alongside his wife, former First Lady Rosalynn Carter, who passed away in August 2024.

News

Chinese bank approves $254.76m loan for Kano-Kaduna railway

Published

4 hours ago

January 8, 2025

Naijablitznews

The China Development Bank has announced the approval of a $254.76m (€245m) loan to support the Kano-Kaduna railway project in Nigeria.

According to information released on its website on Tuesday, the financial backing is expected to ensure the seamless continuation of the construction work.

It said on its website, “China Development Bank released on Tuesday that the bank has recently granted a loan of 245m euros ($254.76m) to the Kano-Kaduna railway project in Nigeria, providing financial support for the smooth progress of the project.”

The railway, a standard-gauge line stretching 203 kilometres, will link Kano, a key commercial city in northern Nigeria, to the nation’s capital, Abuja.

Once operational, it will provide residents with a safer and more efficient mode of transport, improving regional connectivity.

In addition to easing transportation, the project is expected to spur economic growth by fostering the development of industries along its corridor.

It is also set to create numerous employment opportunities during its construction and subsequent operations.

The Kano-Kaduna railway has been listed as a practical cooperation project under the Third Belt and Road Forum for International Cooperation.

The project is being executed by the China Civil Engineering Construction Corporation and financed by the CDB.

According to the bank, construction is progressing well. The CDB reiterated its commitment to working closely with the Nigerian government to ensure the disbursement of funds and effective management of the next phases of the project.

The China Exim Bank, who was to be the funder of this project, backed off, with Nigeria announcing the CDB as the new financier.

The CDB noted, “Going forward, it will closely coordinate with Nigerian partners to ensure the smooth disbursement of subsequent loans and effective post-loan management.”

Last year, President Bola Tinubu assured that the Ibadan-Abuja-Kaduna-Kano railway project would be completed to satisfaction.

The Federal Government hopes that the ongoing construction of the Kaduna to Kano rail line will be completed before the end of this year.

About N44.4bn has been budgeted this year for the completion of the Abuja-Kaduna Railway project, Lagos-Ibadan railway, and other railway projects across the country.

The Foreign Minister of the People’s Republic of China, Wang Yi, is scheduled to arrive in Abuja on Wednesday for an official visit.

During the visit, Yi, who is a member of the Political Bureau of the Central Committee of the Communist Party of China, will engage in discussions aimed at strengthening ties between Nigeria and China.

News

UK spreads travel entry scheme to US, Canada, Australia

Published

4 hours ago

January 8, 2025

Naijablitznews

The UK’s new visa-waiver entry system took effect on Wednesday for passengers from dozens more countries, including millions of annual visitors from the United States, Canada and Australia.

The Electronic Travel Authorisation (ETA) scheme — similar to the ESTA system in the United States — requires visitors who do not need a visa to enter Britain to acquire pre-travel authorisation.

Costing £10 ($12.50) and allowing stays of up to six months at a time over two years, it first launched in 2023, with Qatar, before being extended last year to five regional Gulf neighbours.

Now, it has been expanded to include citizens of around 50 more countries and territories, from Argentina, Brazil and New Zealand to Japan, South Korea and Caribbean nations.

With the system kicking in for them on Wednesday, they have been able to apply since last November.

The scheme, aimed at tightening border security, will next be extended to dozens of EU and European countries and territories on April 2.

Citizens covered by the scheme will be able to apply for the new ETA — which is digitally linked to the traveller’s passport — via an app, from March 5.

Around six million people from the US, Canada and Australia visit Britain each year, according to the UK government.

Eligible travellers will need one even if they are just using the UK to connect to an onward flight abroad. ETA also applies to children and babies.

London’s Heathrow Airport has opposed the scheme, saying its rollout has reduced the number of passengers transiting through the UK, and that it makes the country “less competitive” and harms economic growth.

The new requirement does not apply to British and Irish citizens, those with passports from British overseas territories and legal UK residents.

It does not change the requirements for citizens of countries who need a visa to visit Britain, such as Chinese, Ecuadorian and South African travellers.

Previously, most visitors not requiring a visa could arrive at a British airport and proceed through immigration control with their passport.

The new UK entry scheme mirrors the imminent ETIAS scheme for visa-exempt nationals travelling to 30 European countries, including France and Germany, which will cost seven euros ($7.40) and last three years.

The European Commission expects the system — which will apply to around 60 countries, including the US, Canada, Brazil and the UK — to become operational in the middle of this year.