Kick-off Of The Finance Bill
By Jude Chukwuemeka
Today, Morning Crossfire takes a look at where matters are regarding the Finance Bill. Sheriff Quadry in a conversation with Taiwo Oyedele finds out that the Bill is yet to go into effect in Nigeria...
According to the Minister of Finance, Budget and National Planning, Zainab Ahmed last year: "For the bill to come into effect, the Federal Inland Revenue Service (FIRS) will have to engage the commercial banks and work out a modality on how the new law will be implemented.”
While the 2020 Budget expected to be financed partly by tax revenues generated through key fiscal changes introduced by the bill has already kicked off (as per the Finance Minister’s assertions in December 2019), implementation of the finance bill is still on rocky grounds.
In December 2019, the Morning Crossfire team of Wemimo and Adewuni discussed the Finance Bill which was passed by the Senate on 21st November 2019.
Today, Morning Crossfire presents a recap of some of the things that Taiwo Oyedele of PwC Nigeria highlighted during the conversation as a back story to the discussion at hand.
Taiwo Oyedele is Partner, Tax Policy and West Africa Tax Leader, PwC /Member of the ministerial committee on the implementation of Nigeria's National Tax Policy made the following remarks on today's Morning Crossfire show:
"The Bill is still with the various ministries that Mr. President sent it to in order to clarify if things are still the same. Once it is verified, he will accept it back and sign it into law."
However, he said that the VAT rate remains the same as of now. "If anybody wants to charge you above the five percent refuse that," he says in the conversation with Sheriff. Furthermore, the 50 naira stamp duty on PoS transactions still remain. According to Taiwo, the Finance Bill will raise the threshold from one thousand to 10 thousand naira.
"Even though the Central Bank of Nigeria (CBN) announced their rates in December last year, there is still a charge or charges when people make transactions below 5,000 naira. any inter-bank transfer less than 5,000 naira will attract 10 naira only. But from 5,001 to 50,000 bank transfers, there is a charge of 25 naira. Anything above that attracts 50 naira."
As an expert, Taiwo doesn't think it proper for Nigerian banks to pay for inter-bank transactions. Listen to the reasons... Play the video above.
#MorningCrossfire with @SheriffQuadry