Finance Law Will Exempt Minimum Wages From Capital Gains Tax
Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, says the 2020 Finance Bill, once transformed into law, will exempt the minimum wage from personal income tax (PIT).
Ahmed said this Friday in Abuja at a public hearing organized by the House of Representatives Finance Commission.
“In light of the current economic situation, it is proposed to exempt people who receive the minimum wage from paying personal income tax,” the minister said.
Ahmed explained that not a single new tax was introduced and there was no increase in tax on the account.
The minister explained that the bill provides for reforms that will allow the country to solve the current economic problems caused by the COVID-19 pandemic.
He said an amendment has been proposed to provide tax incentives to companies that have donated COVID-19 aid funds to the government in order to encourage them in the future.
Ahmed said the law would make it easier to apply incentives to banks that have provided financing for primary agricultural products.
According to her, the bill is also aimed at clarifying the categories of farms that are subject to the poorest benefits.
Ahmed said an amendment was proposed to the Companies and Related Matters Act to create a trust fund for unclaimed dividends and unused bank balance sheets.
He explained that the declared dividends and the unclaimed fund will be kept in the form of indefinite debt to shareholders.
“It is proposed to transfer the unclaimed dividends to the government as trustees of the fund, which was established under the supervision of the Central Bank of Nigeria (CBN) and a department director (DMO),” he said.
He said section 1 of the Higher Education Trust Fund Law would be amended to exempt small businesses from paying taxes to higher education trust funds.
Ahmed said an amendment has been proposed to Section 33 of the Corporate Income Tax Act to reduce the minimum tax rate from 0.5% to 0.25% of the gross turnover of the fiscal year ending December 31. 2021
In addition, he said that sections 8, 25, 26, 39, 50 and 69 of the Federal Internal Revenue Service (FIRS) Act will be amended to allow the service to implement tax collection technologies and punish employees who disclose taxpayer privacy.
He said the bill would also amend the Capital Gains Tax Law to provide for tax exemptions in damages of up to $ 10 million.
Opening the hearing, spokeswoman Femi Gbajabiamila said the finance bill would determine, among other things, the country’s ability to fund the 2021 budget to meet government commitments.
He said that this will determine the implementation of policies to create infrastructure, solve the problem of insecurity, grow the economy and ensure work with wages at least the cost of living and lifting families out of poverty.
“This is an important piece of legislation that deserves careful consideration and reasoned discussion in the people’s parliament, which acts in the best interests of the people.
“We, as legislators, are responsible for scrutinizing and scrutinizing every aspect of this bill to ensure that we produce a legislative document that clearly articulates its objectives, is weighed against the mandates it imposes, and reflects the best aspirations. all our citizens. …
“This public hearing brings us closer to this laudable goal by providing an opportunity for citizens and legislators to jointly consider the content of the bill.
“During these public hearings, citizens are expected to come up with ideas and recommendations that will improve the quality of legislation and ensure that the various interests and concerns of all Nigerians are taken into account before the law is finally enacted. of this important legislation, ”he said.
House Finance Committee spokesman James Faleke said creating an inclusive, prosperous and sustainable economy for Nigerians and significantly reducing the proportion of poor and unemployed Nigerians is a key economic goal. houses.
He said that the executive branch of the government, in an effort to properly change the economic state of the country, initiated the 2020 financial law to change certain pieces of legislation.
“Include the Capital Gains Tax Law as amended by the 2019 Finance Law; Corporate Income Tax Act as amended by the 2019 Finance Act and the Industrial Development Act (Income Tax Relief).
“In addition, the Personal Income Tax Law, the Higher Education Trust Fund (institute, etc.), (Consolidated) Law on Customs and Excise Duty and Tariffs, etc.
“Others are the Value Added Tax Act, Stamp Duty Act, Electronic Transaction Tax, Federal Revenue Agency (institution) Act, Nigerian Export Processing Zone Act, Oil and Gas Export Processing Act, Crisis Intervention Act, Unclaimed Funds, Corporations and Related Matters Trust Fund Law 2020, Tax Liability Law and Public Procurement Law, ”he said. …
The spokesman said the aim of the amendments is to revitalize the economy, promote tax equity by easing regressive taxation cases and reform national tax laws to bring them in line with global standards, among other things.
“We hereby implore all stakeholders and the general public to help us by providing the necessary materials to enable us to pass this law in the interests of the national economy and all the people of Nigeria,” he said.
Source: – NAS