The Federal Executive Council yesterday approved the Finance Bill 2020 conceived to enhance incremental changes in the nation’s tax laws but assured Nigerians that there would be no fresh levy.
She said its passage would also ensure the removal of two per cent education tax being paid by smallest businesses despite zero payment of company income tax. She stated that incremental changes imply gradual changes in the tax system, which she said might be an upward or downward review, noting, however, that incremental change, as provided in the bill, aims at reducing the tax burden in view of the current economic challenges caused by COVID-19.
“During the process, we received a lot of suggestions from different stakeholders but we had to limit what we could take because we are bound by three principles – to adopt appropriate counter fiscal measures to manage the economic slowdown; incrementally reforming the fiscal incentive policies of the government and ensuring closer coordination between the monetary trade as well as fiscal authorities.
“These reforms will commence and will also be closely followed by the cessation rules for small businesses as well as providing incentives for mass transits by reducing import duties and the levies for large tractors, buses and other motor vehicles. The reason for us is to reduce the cost of transportation which is a major driver of inflation especially food production.”
Also at the briefing, the Minister of Health, Dr. Osagie Ehanire, said the National Centre for Disease Control was probing the outbreak of diseases in some parts of the country. He said such interventions were contained in over a 280-page report he presented to the council on the ministry’s interventions in the housing sector so far.
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