Tax Burden: Buhari Approves 2 Executive Orders, 5 Amendment Bills
Buhari’s government remains bullish on increasing Nigeria’s tax revenue.
Part of measures adopted include: a tax amnesty which has already worked wonders by generating up to 30 billion naira.
But beyond the tax amnesty, the government has also approved two Executive Orders and five Amendment Bills to the Nigeria’s tax policies aimed at reducing tax burden on Nigerians and boosting the ease of doing business.
The Minister of Finance, Kemi Adeosun, said this while briefing State House correspondents at the end of the Federal Executive Council’s meeting in Abuja on Wednesday.
The two approved Executive Orders are: Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order while the five Amendment Bills include the Companies Income Tax Act (Amendment) Bill and Value Added Tax Act (Amendment) Bill.
Others are: Customs, Excise, Tariff ETC (Consolidation) Act (Amendment) Bill; Personal Income Tax Act (Amendment) Bill and Industrial Development (Income Tax Relief) Act (Amendment) Bill.
Adeosun said the new tax policies would remove obsolete, ambiguous and contradictory provisions in the laws, increase government revenue and simplify the process of paying taxes.
“Majority of the provisions approved today are actually removing the tax burden and clarifying obsolete and ambiguous areas of tax. So, for example for VAT there is to be exemption for residential property, leases on rental, transport for the general public and life insurance.
“These are areas that previously were VAT-able and what was approved today was that these areas should be removed, then, they shouldn’t be subject to VAT.
“In the short term of course that means a revenue lost for government. But we think in the long run that is the right thing to do is improving ease of doing business and reducing the tax burden on our people which is really one of the objectives of this government,” the minister explained.
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