Senate holds public hearing for finance bill

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The bill seeks to increase the value-added tax (VAT) from five per cent to 7.5 per cent, among others.

The public hearing was organised by the Senate Committee on Finance.

No copies of the bill were shared to senators to allow for any meaningful contribution before it was debated and passed.For the pubic hearing, stakeholders were invited to discuss their reservations and their recommendations about the bill. Details of the bill were also made available to all the invited stakeholders.

“The definition of stamp duty for electronic money transfer with the attendant N50 charge for transactions amounting to or greater than N10,000…we feel this will constitute a contradiction as it will reverse the government’s cashless policy that is already gaining ground. The institute also agreed with a part of the bill that supports insurance companies to carry tax losses indefinitely and the abolishment of Special Minimum Tax for insurance companies.

“The Stamp Duty in Nigeria shows a high-level multi-taxing process in its implementation. Although Stamp Duty policy will enhance revenue generation, however, its impact on economic growth, fairness and equity is debatable.” These provisions, he said, have broadened the definition of services to “the services provided to a person in Nigeria, regardless of whether the services are rendered within or outside Nigeria.”

 

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