…Reckless borrowings must be checked -— Gbajabiamila

…Says bill’ll reposition finance system, plug wastage

By Levinus Nwabughiogu

The MINISTER of Finance, Budget and National Planning, Zainab Ahmed, yesterday, said yesterday there may be modest increases in taxes and tariffs on certain businesses and individuals over the medium term.

Addressing stakeholders at a public hearing on the 2021 finance bill in Abuja yesterday, Ahmed said the government was also considering new taxes as the “economy was now on a recovery path.”

Speaking at the public hearing organised by the House of Representatives Committee on Finance, the minister said a couple of reforms and amendments had been recommended in the draft 2021 finance amendment bill, adding that more would be introduced in the middle of 2022.

She said more fiscal reforms were still in view as the ministry could not take all the proposals collected from stakeholders.

“While these issues may require most increases in taxes and tariffs on certain businesses, industries, and individuals over the medium term.

“Our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments,” she said.

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Ahmed explained that the ongoing legal cases in court against the Federal Government on VAT and stamp duties had prompted the finance ministry to steer clear of those areas.

She, however, expressed hope that by mid-2022, the cases might have been dispensed with, and then reforms in those areas could be proposed for parliament to consider.

Ahmed said there might be need to revisit the antiquated stamp duties and capital gains tax for holistic reform by the parliament.

She said: “We prepared this draft bill along five reform areas, the first is domestic revenue mobilisation, the second is tax administration and legislative drafting, third is international taxation, fourth is financial sector reforms and tax equity and fifth is improving public financial management reform.

“The provision in the draft bill is proposing to amend the Capital Gains Tax Act, Company Income Tax, FIRS Establishment Act, Personal Income Tax, Stamp Duties Act and Tertiary Education Act, Value Added Tax, Insurance Police Trust Fund, and the Fiscal Responsibility Act.

“This is to amend the Police Trust Fund Act and the Nigerian Trust Fund Acts, the purpose is to empower the FIRS to collect the Nigerian trust fund levies on companies on behalf of the fund itself.”

Earlier in his address while declaring the hearing open, Speaker of the House, Femi Gbajabiamila, said reckless borrowings must be checked by ensuring accountability.

While noting that the bill would help plug the financial loopholes to stop wastages, the speaker said:  “Broadly speaking, this bill seeks strategic amendments to certain operational provisions of the Capital Gains Act, the Companies Income Tax Act, the Federal Inland Revenue Act, Personal Income Tax Act, Stamp Duties Act, Tertiary Education Trust Fund, Value Added Tax Act, Insurance Act, Nigerian Police Trust Fund (Establishment Act) National Agency for Science and Engineering Infrastructure Act, Finance Control and Management Act and Fiscal Responsibility Act and for related matters.

“The 2021 Finance Bill seeks to introduce strategic and broadminded, positive reforms that will engender best practices.”

, statutorily check borrowing by local, states and Federal Government, enhance transparency and accountability in the administration in various strata of tax and public revenue generation, while at the same time guaranteeing the interest of the investing public and businesses.

“It is instructive to state that the essence of the 2021 bill is to further reposition our finance system to plug wastes, close openings for corruption, create opportunities for employment as well as stimulate stability and growth in our productive sectors, within the wider context of our quest for economic recovery in our country. 

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