Daybreak, Politics, Entertainment, Sport

Tag: VAT

  • Buhari Approves Import Duty, VAT Waivers For Critical Medical Equipment

    Buhari Approves Import Duty, VAT Waivers For Critical Medical Equipment

    President Muhammadu Buhari has approved the waiver of import duty and Value Added Tax (VAT) for critical medical equipment and supplies.

    The Presidency revealed this in a series of tweets on Thursday, saying the waiver was for a period of six months in the first instance.

    It explained that the President’s action was part of measures put in place by the Nigerian government to address the impact of the COVID-19 pandemic on its economy.

    According to the Presidency, the waivers which are the latest of the fiscal policies also aim to boost the health infrastructure in the country.

    Meanwhile, President Buhari has directed the Nigeria Customs Service to ensure critical medical equipment and supplies were given expedited clearance at all times.

    He stressed that this should be done in line with the standard operating procedures for the clearance of humanitarian and relief materials.

    The Presidency noted that the measures to facilitate the importation of some COVID-19 essential medical supplies were in line with the indicative list recommended by the World Customs Organisation and the World Health Organisation (WHO).

    It added that the list was reviewed by the Ministry of Industry, Trade and Investment, as well as the Ministry of Finance, Budget and National Planning

  • We’ll implement 7.5 per cent VAT from Feb 1 — AEDC tells customers

    We’ll implement 7.5 per cent VAT from Feb 1 — AEDC tells customers

    The Abuja Electricity Distribution Company (AEDC) says it will commence the implementation of the 7.5per cent Value Added Tax (VAT) on its services and cost of meter under the Meter Assert Programme (MAP) from Feb. 1.
    Mr Oyebode Fadipe, AEDC’s General Manager Corporate Communications, made this known in a statement in Abuja on Wednesday.
    Fadipe said that the directive was in compliance with the Federal Government directive on VAT.
    He said ” Please be informed that the new VAT of 7.5 per cent will from February 1 be reflected in all our services, electricity bill and cost of meter under MAP.
    “Customers are to note that VAT is only applied on the aggregate cost of energy consumed by the customer per time and the cost of the meter, and not an increase in the unit cost of electricity or meter.
    According to him, single phase meter which cost N36, 991.50 will be N39,765.86 with VAT addition of N2,774.56.
    He said that three phase meter which is N67,055.85 would cost N72, 085.04 with VAT addition of N5, 029.19 (NAN)

  • Tax expert urges NASS to okay Feb. 1 as VAT approval date

    Tax expert urges NASS to okay Feb. 1 as VAT approval date

    A tax expert, Mrs Morenike Babington-Ashaye, on Thursday urged the National Assembly to make a pronouncement on the commencement date for the implementation of the Finance Act 2019 to make it authentic before Nigerians.
    Babington-Ashaye, President of the International Centre for Tax Research and Development (ICTRD), a non-governmental organization, made the remark in a statement made available to News Agency of Nigeria (NAN) in Lagos.
    According to Babington-Ashaye, the omission of the commencement provision and any other transitional provision is a technical issue that is fundamental to the implementation of the Finance Act 2019.
    The Finance Bill, 2019, was submitted to National Assembly by President Muhammadu Buhari alongside the 2020 Appropriation Bill, and signed into law by the president on Jan. 13, 2020.
    It has the objectives of promoting fiscal equity by mitigating instances of regressive taxation and reforming domestic tax laws to align with global best practices as well as introducing tax incentives for investments in infrastructure and capital markets.
    It also supports Micro, Small and Medium scale businesses in line with the administration’s Ease of Doing Business Reforms and raises revenues for Federal, State and Local Governments.
    The new Act raises VAT from five per cent to 7.5 per cent and which the Federal Government will from Feb. 1 begin its implementation.
    She said the Minister of Finance, Budget and Planning or any other regulatory body so permitted by the National Assembly must issue a Gazette announcing to the public when provisions of the Finance Act would commence.
    The tax expert also noted that the Gazette must also make clear issues in the Finance Act where such clarity is missing.
    Babington-Ashaye, therefore, implored the government to put a hold on the collection of the Value Added Tax (VAT).
    She said, “Kindly put on hold your instruction to collect VAT at 7.5 per cent, effective Feb. 1, 2020.
    “However, VAT at five per cent can be collected pending the National Assembly’s approval of the commencement date of the Finance Act 2019.
    “The power to issue regulations must be derived from the Finance Act.”
    Babington-Ashaye said without proper notification of the commencement of the Finance Act, the general public might refuse to comply with the new rate or any other provisions in the Finance Act 2019 and it might lead to court cases.
    The former Executive Chairman, Ogun State Internal Revenue Service, also said that without the pronouncement on the commencement date, the law could not be alleged by the revenue agencies in court or tax tribunal.
    The tax expert said such Act in developed climes such as the United Kingdom and even in African country such as Kenya had commencement dates.
    She advised stakeholders to refer to the UK Finance Act 2019 and Kenya Finance Act 2019 on commencement and transitional provisions for the implementation of their Finance Act.
    She said that it would help for the best interest of tax development in Nigeria. (NAN)