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Wike Urges Property Owners, Organizations To Pay Tax Or Risk Revocation
By Joyce Remi-Babayeju
Minister of the Federal Capital Territory, Barr. Nyesom Wike, on Tuesday urged all property owners and organizations in the territory a final grace of two weeks beginning from Monday to pay up their ground rents or risk revocation.
Wike gave this warning on Monday at the inspection of ongoing projects including the Vice President’s residence, under construction by Julius Berger; the Asokoro and Area 1 roundabout on the Outer Southern Expressway being constructed by CGC; Wuye Bridge under construction by Arab Contractors Limited; and road D6 and B12, handled by Julius Berger.
The minister expressed optimism about the timely delivery of the projects said; “I think we are quite optimistic that with the speed of work, and taking advantage of the weather, we believe that by May 29, these projects will be ready.
“It is very key for us to understand that without payment of taxes, it will be very difficult for us to carry out most of these gigantic projects. If we don’t have the money, there is nothing we can do.”
” Again, like we have always said to the elite, they want roads, they want good environment, they want streetlights everywhere; government does not print money. Government needs to tax people and then use that money for the development of the area.”
“So, I will always plead with everybody that they should try, as much as they can, to pay their ground rents. We have published the last set of those who are still owing the one for 2023. We gave them until 14th of December last year, after which we were going to revoke.”
But we are human, we believe that the ethics will not be as good as people expect, well, we have extended it to another two weeks, after which we will have no choice if you don’t pay, but to revoke the title documents”, he said.
According to the minister, despite the economic situation in the country, his administration would not allow contract variation, by ensuring the prompt payment of project funds to the various contractors.
“First, whether inflation or not, that is why we are here, to solve problems. With the taxes people pay, we try, as much as we can, to allocate it to the priority projects. Again, we don’t allow variation. Why? Because we also try to pay as at when due, so the issue of variation does not come in”, Wike emphasized.
February 14, 2024
Welcoming The Fiscal Policy and Tax Reform Committee
The Political Economic Analytics – a Nigerian-based independent think-tank and research organization have unanimously lauded President Tinubu for Inaugurating the Fiscal Policy and Tax Reform Committee (FPTRC).
The President is highly commended for working the talk as captured in his swearing-in speech on May 29th, 2023, that his Government is going to take action in regards to the multiple taxation complaints and challenges of revenue shortfalls, affecting the nation.
This is no doubt a laudable move by President Tinubu’s administration to tackle problems of a disarticulated tax regime, and official negligence of yesteryears that worsened the case of tax evasion and non-compliance in Nigeria.
For us at Pol Eco Analytics (PEA), this is a patriotic policy stand Nigerians must commend.
Meanwhile, there is no gainsaying that the coming of the Fiscal Policy and Tax Committee (FPTRC) to be chaired by Taiwo Oyedele is a composition of seasoned professionals and vast business experts, saddled with this national task.
The PEA, therefore, demands the demonstration of unwavering determination and commitment amid many difficulties the FPTRC would face in achieving the set goals before them, which includes a three-point focus namely: fiscal governance, tax reform, and growth facilitation.
In addition, is the President’s mandate of ensuring a target of an 18% tax-to-GDP ratio in 12 months – an ambitious agenda of moving away from the current 8% to GDP ratio, as well as seemingly objective to block and bring into the Government’s purse over N20 trillions lost of tax evasion into the economy.
Again, this committee is timely constituted to find lasting solutions to the excesses on the part of over 56 Government agencies’ confusion over their mandates on tax remittance to the Government.
While Pol Eco Analytics acknowledges the fact that the nation deserves such a committee at this time of our national life, because, no serious nation underestimates the importance of fiscal measures and tax administration, especially with the prevailing global economic crunch, off which Nigeria is not spared going by her dwindling economy situation.
However, we anticipate a break from the norm, where successive Governments in the past would inaugurate committees in this manner as a means to compensate their political associates and others.
For us, as an organization and a stakeholder in the Nigeria economy and development project, we believe the Taiwo Oyedele-led-Fiscal Policy and Tax Committee (FPTRC) have its mandate cut out in ensuring we have a suitable fiscal regime and tax instruments of international best practice and business-friendly, at the same time, to boost Government revenues.
The Pol Eco Analytics emphasises the need for the committee to be transparent, build the confidence of all stakeholders and avoid the politicisation of its activities.
Similarly, we suggest the committee must align on how best the detoxification of the tax environment while ridding it of mutual mistrust, negative tax morale, and tax evasion to having effective taxpayers with open engagement and stakeholders dialogue, amongst others.
In the same vein, Pol Eco Analytics urges President Tinubu’s Government to keep to its word of a ‘Renewed Hope’ agenda as a reality for Nigerians, by making the various economic reforms being introduced so far people-oriented and implementable.
August 10, 2023
FG imposes N10 per liter tax on carbonated drinks, to control diabetes, obesity, and other diseases
Nigeria’s Federal Government has introduced an excise duty of N10 per litre on all non-alcoholic, carbonated and sweetened beverages.
She argued that N10 tax per litre of soda drinks was to “discourage excessive consumption of sugar in beverages, which contributed to diabetes, obesity and other diseases.”
Excise duty is a form of tax imposed on the production, licensing and sale of goods.
Mrs. Ahmed said the new policy introduced is in the Finance Act signed into law by President Muhammadu Buhari on December 31, 2021.
“There’s now an excise duty of N10 per litre imposed on all non-alcoholic and sweetened beverages. And this is to discourage excessive consumption of sugar in beverages which contributes to a number of health conditions including diabetes, obesity and other diseases. But it is also used to raise excise duties and revenues for health-related and other critical expenditures. This is in line also with the 2022 budget priorities.”
She also said the government had introduced a law requiring foreign companies providing digital services in the country to collect and remit Value Added Tax to the Federal Inland Revenue Service.
According to her, the new policy is also contained in Section 30 of the Finance Act which amended the provisions of Section 10, 31 and 14 on VAT obligations for non-resident digital companies.
“Section 30 of the Finance Act is designed to amend Section 10, 31 and 14 of VAT is in relations to VAT obligations for non-resident digital companies and the mechanism that will be used is to restrict VAT obligations mainly to digital non-resident companies who supply individuals in Nigeria who can’t themselves self-account for VAT,” the minister said.
“So if you visit Amazon, we are expecting Amazon to add VAT charge to whatever transaction you are paying for. I am using Amazon as an example. We are going to be working with Amazon to be agreed to be registered as a tax agent for the FIRS.
“So Amazon will now collect this payment and remit to FIRS and this is in line with global best practices, we have been missing out on this stream of revenue.
The noted that the new law applies to foreign companies that provide digital services such as, “apps, high frequency trading, electronic data storage, online advertising” among others.
January 6, 2022
Oyo Govt Tasks New Businesses on Tax payment
Oyo State Government has urged new businesses in the State to help it boost its revenue by paying their taxes, as at when due.
The commissioner for Information, Culture and tourism, Dr. Wasiu Olatunbosun stated this over the weekend during the launch of new businesses in Ibadan.
He said the State Government’s concerted efforts to block revenue leakages has started yielding positive results, adding that the State’s position in the ranking of States with highest internally generated revenue is an attestation to Governor Seyi Makinde’s efforts to boost revenue for effective service delivery.
He said the State government will not stop to enlighten its citizenry on the gains of paying taxes, adding that payment of tax by Businesses will ease execution of infrastructural facilities within the state.
Olatunbosun urged business operators in the state to pay their taxes directly into Oyo State Government specified account and obtain receipt or teller, stressing that governance in Oyo State is in the good hands of Engr. Seyi Makinde.
Speaking further, Dr. Olatunbosun noted that the policies of Governor Makinde’s Government has contributed to the ease of doing businesses in the pace setter State.
Olatunbosun noted that the State Government is progressing in its development agenda for its residents and has blocked leakages.
He said, “Oyo State Government has shaped tax policies in a way that encourages and supports the growth of the informal sector of the economy. We are quite aware that multiple taxes affect micro and small enterprises negatively and we have made efforts to eradicate it”.
Olatunbosun said the State Government is excited to welcome to Ibadan brands like McEnies, Perfect Clicks and Ruby Models, a three in one conglomerate with over 15 years experience in building multinational brands.
Speaking earlier, the CEO, the Integrated Three Business in one, Omolaraeni Olaosebikan said her relocation to Ibadan is a testament that the megacity is a journey of destiny for her and her businesses.
Launch of her three in one businesses; McEnies, Perfect clicks and Ruby Models was witnessed by Business moguls and experts in the PR sector.
November 22, 2021
Economist tasks FG on Tax incentives to attract more Investments
An economist, Mr Kennedy Eze, has urged the Federal Government to provide tax incentives so as to attract more investments into Nigeria.
In an interview with the News Agency of Nigeria (NAN) on Sunday, in Abuja, Eze said that a lot of global players could not play in Africa because African countries increased their taxes.
“When you increase your tax you discourage investments because when I find out that the tax I will pay will be so high just like when the price to buy a product is high, the ability to buy will be reduced.
“But, when the price is low you can buy more of that product. So, that is the problem in Africa because tax is discouraging investments in Africa.
“Government needs to implement selective taxation, looking at sectors that should have reduced tax, sectors to be tax free and sectors that you have a tax regime.
“This is because when there are certain areas that are tax free, you find out that it is easy for investors to come in.
“I own a company in Singapore and for two years my company pays no tax, and we were able to employ Singaporeans but here the government concentrates much on what do I get from the business.
“The business is going to die and at the end, you are not getting much.
“Let the government not look at what do I get, the government should first look at how do I make the environment enabling for these investors,’’ Eze said
Eze, who is the Conference Director, 2021 Advance Africa Entrepreneurship, Business Owners and Executives International Conference and Exhibition scheduled for Nov. 22, in Abuja, said that the conference aimed to provide a platform for the business community to exchange ideas.
“No fewer than 10, 750 participants are expected to attend the conference, where the business community, government and institutional stakeholders will engage for exchange of ideas,’’ he added.
The event with the theme: “Empowering business and building a virile nation through entrepreneurship’’ is supported by the Federal Ministry of Industry, Trade and Investment and the Small and Medium Enterprises Development Agency (SMEDAN).
Eze said that SMEs, entrepreneurs, business owners and executives in Nigeria and the African business community would have direct links with government policy makers and policy regulators at the event that would also ”examine how businesses affect the Nigerian populace”.
“In every society there are three key players—the people, business players and the regulators.
“The essence of this programme of bringing these groups together is to inter change, to discuss and find ways of moving the economy and ensuring the business environment improves,’’ Eze said.
He noted that the programme would be essential to promoting SMEs in the country.
November 7, 2021
Multichoice loses legal battle on $342m tax to FIRS
The long-drawn legal battle by the South African Company, Multichoice Africa Holdings B.V with the Nigerian government-owned Federal Inland Revenue Services (FIRS) over the disputed $342m tax has been struck out.
The Tax Appeal Tribunal on Tuesday struck out the appeal instituted by the company for want of diligent prosecution and ordered it to pay up the $342m tax assessment handed over to It by the FIRS.
Multichoice Africa Holdings is the parent company of Multichoice Nigeria and has engaged FIRS in fierce legal fireworks to challenge the assessment of the FIRS on its unpaid Value Added Tax (VAT) amounting to over $123.7 million.
The tribunal while delivering its judgment on the appeal filed by the company upheld the preliminary objection of the FIRS against the appeal of Multichoice Africa Holdings B.V.
The Tribunal stated that the South African company did not comply with Order 3 Rule 6 of the Tax Appeal Tribunal (Procedure) Rules, 2021, which requires that an appellant is to deposit half of the assessed amount it is disputing before it can be heard on appeal.
In addition to depositing the sum, the appellant is required to file along with its appeal an affidavit verifying the payment which the company also failed to comply with.
According to the Tribunal, the sum is to be paid as a security for the hearing of any tax appeal. The rule states that “for an appeal against the tax authority, the aggrieved person will pay 50% of the disputed amount into designated account by the Tribunal before hearing as security for prosecuting the appeal”.
FIRS had served a notice of unpaid VAT on Multichoice Africa Holdings B.V. but the company vehemently challenged the assessment and filed an appeal at the tribunal.
It, however, failed to comply with provisions of tax laws by the refusal to make the required deposit as stipulated by the Tribunal Rules.
With the ruling, the FIRS is expected to enforce the payment of the principal sum of $123.7 million being unpaid VAT by Multichoice Africa Holdings B.V. as well as interest and penalty at $218 million, totalling over $342 million.
It will be recalled that the FIRS had served Multichoice Africa Holdings B.V. a notice of assessment of unpaid VAT on the 16th of June 2021.
The company had consequently appealed the assessment at the Tax Appeal Tribunal on the ground of being too excessive.
Multichoice Africa Holdings, the parent company of Multichoice Nigeria, though, providing services to its Nigerian arm was said not to have paid Value Added Tax since inception.
October 26, 2021
Only 41 Million People Pay Tax In Nigeria – FIRS
The Chairman of the Federal Inland Revenue Service (FIRS), Muhammad Nami, has said that only 41 million pay taxes in Nigeria out of the over 200 million population in the country.
Nami disclosed this at the ‘Public Presentation and Breakdown of the Highlights of the 2022 Appropriation Bill’ on Friday in Abuja.
He explained that in spite of the 41 million taxpayers in the country, Nigeria still earned lower than what its counterparts across Africa generate from Personal Income Taxes (PIT).
“If you also compare that with South Africa where they have a total population of about 60 million people, with just 4 million taxpayers, the total personal income tax paid in South Africa last year was about N13 trillion. You can now see that these things are not adding up.
“The number of billionaires in Lagos alone are more than the number of billionaires in the whole of South Africa but yet what we generated as PIT by Lagos State was low.
“So if we don’t pay these taxes, there is no way the government will be able to provide the social amenities required, the critical infrastructure required for the wellbeing of the country,” Nami said.
He said that the total collection up to Sept. 31, which has not been fully reconciled with the Central Bank of Nigeria (CBN) and the Nigerian Customs is about N4.2 trillion, from this amount, oil related taxes accounted for only 22 per cent which is N950 billion only, the non oil taxes generated was within that period is N3.3 trillion.
“People are not willing to pay even when they are appointed as agent of collection, whatever they have collected they find it difficult to remit.
“We assume that we are a rich country, I don’t think that is correct, we only have the potential to be rich, because we have a very huge population of about 200 million.
“If you look at it from the rate of taxes paid in Saudi Arabia with a population of 10 million people, the VAT rate is as high as 15 per cent and what we have in Nigeria is just 7.5 per cent,” Nami said.
October 9, 2021
More Trouble For Nigerians As FG Considers Fresh Tax On Petroleum Products, Recharge Cards
As the Federal Government declared tax reliefs for businesses due to the economic impact of the COVID-19 pandemic, it is considering new taxes to generate revenue to fund the 2021 Appropriation Act.
The Nigeria Customs Service also proposed the return of a N1.50 levy on every litre of petroleum product bought in the country. Non-alcoholic beverages are also to be taxed like alcoholic drinks and tobacco.
Controller-General of the NCS, Col. Hameed Ali (retd.), had on Thursday appeared before the House of Representatives Committee on Customs to defend the service’s 2020 budgetary performance and 2021 proposal.
Ali, who led top officials of the Customs before the committee, made written and oral submissions. The lawmakers also grilled him for about three hours.
The Customs boss told the lawmakers that the service had designed various strategies to improve revenue generation in 2021 based on the 2021-2023 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Part of the programmes to be executed is the e-Customs, which will make its operations electronic and automated. Ali said the NCS plans to purchase operational scanners and border surveillance equipment, among others.
“Proportionally, it is the service’s expectation that, as a result of this reform, we will increase the revenue base of the government,” he said.
The Customs boss also noted that the service recommended and the government approved downward tariff review of the current 35 per cent levy on new and luxury imported vehicles to five per cent. He said the duty on commercial vehicles was also downwardly reviewed from 35 per cent to 10 per cent.
He said, “This is to encourage massive importation of vehicles into Nigeria and further increase the revenue base of the government; also, and most importantly, to reduce smuggling of vehicles through our borders. The complaint has always been that the tariff is too high and, therefore, people are forced to go through the borders to smuggle their vehicles.
“Based on that and now that we have succeeded in reducing these duties, it is our belief that most of the vehicles coming into Nigeria will come through the ports and by so doing, it will create jobs, increase earnings for not only the Customs but also other operatives in the marine sector. So, it is a win-win situation as far as we are concerned.”
Consequently, Ali stated that a levy would now be reintroduced on petroleum products, adding that the NCS had recommended that telecommunications service providers should also be taxed on the recharge cards they produce, while carbonated drinks would also become taxable soon.
He said, “One of the reasons for us to tax carbonated drinks is that, if we tax alcoholic beverages and tobacco because they are injurious to our health, carbonated drinks, with the content of sugar, are equally injurious to our health.
“Most of the diabetes cases we see today are as a result of consumption of these drinks. So, it is deadly; as deadly as tobacco. Alcohol is less deadly than them. But we are still running a zero excise duty on these companies.”
March 7, 2021