News

December 22, 2022

Senate begins Finance Bill Consideration

Senate begins Finance Bill Consideration

As FG Seeks Amendments To 34 Sections Of 10 Existing  Acts

Finance Act 2022 to  change of name of the Federal Inland Revenue service to the Nigeria Revenue Service

Proposes 35 per cent on Electronic money transfer levy receipt to be paid to local government as against Initial 15 per cent to the Federal Government and 85% to  state

By Henry Umoru 

THE Senate has begun the consideration of the  Finance Bill which was sent to the National Assembly by President Muhammadu Buhari on approval. 

The amendments to the Finance Act are expected to be passed with the 2023 Appropriation Bill which that would be  considered and passed next week.

This Finance Bill, is the fourth one in the series that seeks to complement the budget cycle of January-December that was re-established with the 2020 Appropriation Act by the 9” National Assembly. 

Speaking yesterday in Abuja when she appeared before the Senator Olamilekan Adeola, APC, Lagos West led Senate Committee on Finance to defend the amendments propsed to the 2022 Finance Act,  Minister of Finance, Budget and Economic Planning, Mrs Zainab Ahmed  highlited the key provisions in the Finance Act 2022 to include the change of name of the Federal Inland Revenue service to the Nigeria Revenue Service 

According to her, the amendment  also include the reorganisation of the board  of the Federal Inland Revenue Service by separating the executive management from the board 

The Minister said, “The Chairman  of the agency will now be referred to as Commissioner General.”

The amendment also proposes  the 35 per cent on Electronic money transfer levy receipt to be paid to local government as against Initial 15 per cent to the Federal Government and 85 let cent to state, just as it proposes 50 per cent  tax  increase from the 30 let cent to companies involved in Gas flaring among others.

Earlier in his remarks,  Chairman of the Senate Committee on Finance,  Senator  Adeola who  explained that the bill generally seeks to review and possibly amend sections of existing legislations on revenue for the nation, said, “The intent of these amendments is not only for generating increased revenue for the government but also providing clarity, removing ambiguities, providing succor for deserving persons and sectors as well as bringing our laws up to speed with global best practices. 

“Let me restate that in our nation’s legislative development, the way forward at present is not much about enacting new laws as much as amendments of old laws to take care of new realities and reform observed shortcomings in the implementation of existing laws. 

“Such new realities include the development of new technologies and its implications for revenue/income generation by individuals, corporate bodies and government agencies. 

“This among other realities and observed challenges are the rationale for the yearly amendments contained in proposed Finance Bill. 

“In the bill referred to the Committee, a total of 10 existing Acts are proposed for amendments namely: 

“Capital Gains Tax Act, Companies Income Tax Act, Customs, Exercise Tarrif, etc (Consolation) Act, Federal Revenue Service Establishment Act e Personal Income Tax, Petroleum Profits Tax Act, Stamp Duties Act, Value Added Tax Act, Corrupt Practices and other Related Offences Act, Public Procurement Act 

“In all 34 Sections of the various Acts are in the bill before us for consideration and possible amendments. 

“We are to understand that our economy is facing serious challenges occasioned by many factors including crude oil theft, armed insurgency and banditry as well as spiraling inflation rate that are being tackled by the government. 

“The expectation is that at the possible passage of these amendments and its faithful implementation, our country can be propel toward appreciable economic outlook.”