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Senate passes finance bill 14 days after transmission

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The Senate has passed the Finance Bill 2021, transmitted to the National Assembly by President Muhammadu Buhari, on December 7, 2021.

The passage of the bill coming two weeks later, followed the consideration of a report by the Joint Committee on Finance; Customs, Excise and Tariff; Trade and Investment. 

Chairman of the Joint Committee, Senator Solomon Olamilekan Adeola, in his presentation, said the bill seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability by proposing key specific taxation, customs, excise, fiscal and other relevant laws. 

According to the lawmaker, a total of twelve Acts were amended under the finance bill which contains thirty-nine clauses. 

He added that the bill seeks to promote fiscal equity, align domestic tax laws with global best practice, introduce tax incentives for infrastructure and capital markets, support small businesses and promote increase government revenue. 

“The Finance Act 2020 was predicated essentially on having no new taxes and no new incentives due to the COVID -19’s impact on the economy as such it was structured across four broad thematic areas; Enacting counter cyclical measures and crisis intervention initiatives; Tax, fiscal responsibility, and public procurement reforms; Reforming fiscal incentives policies for job creation; Ensuring closer coordination of monetary, trade and fiscal policies; and Enhancing tax administration”, Senator Adeola said.

The Joint Committee, based on its observations, accordingly, recommended 5 percent Capital Gains Tax to be imposed on shares’ disposal transactions where gains exceed N250m in 12 calendar months.

It recommended that Gaming and Lottery Companies be taxable, as well as Oil and Gas Companies. 

It underscored the need for Midstream and Downstream Oil and Gas Companies to be made liable to corporate tax without the benefit of tax exemptions for firms exporting goods to earn foreign exchange.

The Committee observed that doing so would prevent Double-Dipping by Gas Utilization Companies such that they cannot claim both (1) 3-year Tax Holidays; as well as (2) Petroleum Profit Tax Act Incentives or (3) Pioneer tax Holidays under IDITRA.

The Joint Committee advocated for qualifying Capital Expenditure rules for small and pioneer Companies, to prevent double dipping by mandating that Companies cannot deduct qualifying Capital Expenditure to reduce their taxable profits where the relevant qualifying Capital Expenditure is used to generate tax – exempt income.

It sought more powers for the Federal Inland Revenue Service (FIRS) to collect NPTF levies on Nigerian Companies on behalf of the fund and to streamline tax levy collection from Nigerian Companies in line with President Buhari administration’s ease of doing business reforms.

The Joint Committee also harped on the need for the Federal Government to ensure that FIRS deploys both proprietary and third-party tech applications to collect information from taxpayers, enhance confidentiality and non-disclosure and to enable them investigate tax evasion and other crimes and sanction non-compliant tax payers.

It further called for FIRS to be empowered to assess Non-Resident Firms to tax on fair and reasonable turnover basis on Turnover earned from digital services to Nigerian customers, with a further mandate to appoint persons for the purpose of collection and remittance of non- resident taxes.

The Committee demanded necessary reforms on securities lending transactions, minimum Tax for Insurance Companies and Companies in general, Taxation of Unit Trust Income, Real Estate Investment Trust, and Insurance Companies Capitalization by NAICOM in line with Tax Equity.

It urged the government to mandate FIRS as Principal Tax Revenue Collection Agency to collaborate with other law enforcement MDAs in streamlining Tax Collections by enhancing Public Financial Management reforms.

According to the Joint Committee, doing so would reduce revenue leakages and better track actual expenditure to revenue performance in line with the provision of the Constitution of the Federal Republic of Nigeria 1999 (as Amended), Fiscal Rules and other Extant Money Acts.

It also called for the diversification of Nigeria’s revenue from Oil sector to other sectors to fund critical expenditures.

The Committee while demanding an increase of 0.5 percent in educational tax, pushed for close monitoring of unfolding development and policies on VAT, Tax Incentives, Projected increase Tariff on Tobacco, Alcohol and Carbonated drinks to fund vital expenditure on Health, Education and Security, with a possibility of introduction of new taxes, tariffs and levies as the economy recovers.

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Legislature

Senator Ningi resumes from suspension

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After staying away for 75days out of 90 days suspension slammed on him by the Senate on March 12, 2024, Senator Abdul Ningi ( PDP Bauchi Central), formally resumed legislative activities at the Senate on Tuesday in plenary.

On the strength of motion sponsored by the minority leader Senator Abba Moro on behalf of minority caucus, the Senate recalled Senator Ningi from the three months suspension
Recall that Senator Ningi was suspended by the Senate at the committee of the whole on 2024 budget padding allegation leveled against the Senate during interview he had with the BBC Hausa service.
The Senate had recalled the Lawmaker representing Bauchi Central, Abdul Ningi after 2 Months and two weeks of the 3months suspension slammed on him over his interview in which he alleged padding of the 2024 N28. 7tn budget.

The lawmaker was suspended on the 12th of March, 2023 for three months, but the Senate on Tuesday unanimously resolved to  recall their colleague from suspension.

Recall that, Senator Olamilekan Adeola had come under Orders 9, 10, 41, and 51 to move a motion of privilege and issue of national importance against Ningi over his interview with the British Broadcasting Corporation (Hausa Service).

Ningi had, in the interview alleged that the budget passed by the National Assembly for the 2024 fiscal year is N25tn while the one being implemented by the Presidency is N28.7tn. 

The motion, for the unconditional recall of Senator Abdul Ningi was sponsored by the minority leader Senator Abba Moro, Senator Olalere Oyewumi and Senator Osita Ngwu.

Apparently elated to be back in the Senate, Senator Ningi was among the first set of Senators and House of Representatives members to arrive the National Assembly for plenary on Tuesday

Senator Ningi who along with some few other Senators like Suleiman Kawu ( NNPP Kano South), Aminu Waziri Tambuwal (PDP Sokoto South) etc , came into the National Assembly through the Villa Gate, arrived exactly at 10: 40am, 20minutes to 11:00am fixed for commencement of plenary which even started at about 12:10 pm .

Following his suspension , Senator Ningi lost his Chairmanship position of the Senate Committee on National Identity and Population, which was allocated to Senator Mustapha Musa (APC Yobe East), two days after the now lifted suspension

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Minimum Wage: Senate tackles Labour over National Grid Shutdown, disruption of Hajj flight

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**Resolves to use legislation to prevent reoccurrence
The Senate on Tuesday expressed displeasure at some of the excesses by some members of Nigeria Labour Congress ( NLC) and Trade Union Congress ( TUC) during the nationwide strike for new minimum wage on Monday.
The upper legislative chamber declared that the shut down of the National Grid and the disruption of Hajj flight by some labour unionists were more of economic sabotage than agitation for new minimum wage.
It consequently declared that such situation would not be allowed to re – occur as laws against it would be reflected in the new national minimum wage Act that would be enacted soon after submission of bill to that effect by the executive.
Senate’s grouse against the alleged excesses of labour unionists during the now suspended nationwide strike, came through a motion on the strike action and new minimum wage by the Chairman, Senate Committee on Labour, Senator Diket Plang (APC Plateau Central).

Senator Plang had in the motion, requested the Senate to call on the federal government to expedite action on new minimum wage as a way of stopping the industrial unrest which was however overtaken by sudden suspension of the strike by labour.
But in his remarks, the President of the Senate, Senator Godswill Akpabio said though it was heartwarming that the strike has been suspended but the excesses by some labour unionists need to be condemned
“One of such excesses, was the shut down of the National Grid which is more of an economic sabotage than agitation for new minimum wage.
“Disruption of Hajj flight by some other labour unionists as said by the Deputy President of the Senate, is also not palatable being a religious exercise.
“Also, disruption or prevention of students from writing their West African School Certificate Examination by some labour unionists during the strike was bad because the examination is not organized by Nigeria but West African Countries “, he said.
He added that such actions would not be allowed to be repeated as required laws against them, would be reflected in the new National Minimum Wage Bill expected from the executive very soon.
He,however commended the labour unions for calling off the strike
“I want to thank the Nigerian Labour Congress and the Trade Union Congress for listening to the voice of Nigerians and the international community by calling off the strike to enable negotiations to continue and we wish them well in the negotiations.
“On our part, we will continue to do our best by making contributions and at the same time awaiting the incoming Bill on Minimum Wage for us to enact for the benefit of all Nigerians”, he said .

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Legislature

Senate approves Bill to change National anthem to “Nigeria, We Hail thee”

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**Counters AGF, insists Bill does not need wider consultation

The Senate on Tuesday approved a Bill to change the current National anthem titled “Arise O Compatriots ” to the old national anthem “Nigeria, we Hail thee”.
Following the consideration of the report of its Committees on Judiciary, Human Rights and Legal Matters, and Federal Character, and Inter governmen Affairs on Tuesday, the Senate passed the bill entitled, “National Anthem Bill, 2024” for third reading.

The Senate passed the bill amidst stakeholders misgivings, including Lateef Fagbemi, the Auditor-General of the Federation and Minister of Justice against hasty passage and the need for a wider consultation.
The bill was read for the first and second time last week Thursday at the Senate. It also received an accelerated hearing at the lower house as it was read for the first, second and third time.

The Bill will be transmitted to President Bola Tinubu for assent. If signed into law, it will be the first time Nigeria’s national anthem will be given legal backing.
Mongu nu Tahir, the Senator representing Borno North, while presenting the report of the Committee during plenary informed that the Bill seeks to give a legal framework to the national anthem “so that it can bite and bite with all the legal powers embedded in it.”

He clarified that the Bill, despite the concerns raised by the AGF does not need to be subjected to a wider process of citizen participation through zonal public hearings, resolutions of the Federal Executive Council, Council of State, National and State Assemblies, etc.
He insisted that the Bill is an ordinary Bill, not a constitutional amendment and only requires it to be read first, second and third time after a public hearing.
Presenting the committees report, Monguno however said that the new national anthem is apt as it represents the country’s people, culture, values and aspirations.
“The bill is in tandem with the spirit of unity. It will undoubtedly inspire a zeal for patriotism and cooperation. It will promote cultural heritage. Changing the national anthem will chart a path to greater unity”, Tahir said.
He then recommended that the bill be passed. The Senate then resolved to the committee of the whole to consider the report. After which, Godswill Akpabio, the Senate President put the bill to a voice vote and lawmakers supported it.
The Senate president also noted that the AFG is not a lawmaker and does not have a full understanding of how Bill’s are passed.
The bill was consequently read for the third time and passed.

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