Nigeria has approved approved two Executive Orders and five Amendment Bills to the country’s tax policies, says Minister of Finance Kemi Adeosun.
Adeosun noted this on Wednesday at the end of the Federal Executive Council (FEC) meeting.
According to her, the move was targeted at reducing taxation burdens on Nigerians and also fast track the ease of doing business.
Speaking at the end of the meeting, she said the two approved Executive Orders are: Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order.
The minister thus listed the five Amendment Bills to include the Companies Income Tax Act (Amendment) Bill and Value Added Tax Act (Amendment) Bill.
Also included are: Customs, Excise, Tariff ETC (Consolidation) Act (Amendment) Bill; Personal Income Tax Act (Amendment) Bill and Industrial Development (Income Tax Relief) Act (Amendment) Bill.
Furthermore, Adeosun said the approval followed the presentation of a memorandum to seek the consideration and approval of the Council for the report of the National Tax Policy Implementation Committee on Tax Laws Reform.
“Majority of the provisions approved today are actually removing the tax burden and clarifying obsolete and ambiguous areas of tax,” the minister added.
“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.”
In addition, she stated that Federal Government was proposing an amendment to the Company Income Tax to reduce the Right of Tax on Micro, Small and Medium Enterprises (SME) from 20 per cent to 15 per cent.