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Zainab Ahmed says there could be more taxes in 2022, During hard times,

Zainab Ahmed

According to the Minister of Finance Mrs. Zainab Ahmed "since the economy is currently on a recovery path," new tariffs and taxes may be introduced in 2022.

Mrs. Zainab Ahmed stated this while speaking to stakeholders at the House of Representatives Committee on Finance's public hearing on the 2021 Finance Bill on Monday in Abuja.

She stated that the draft 2021 Finance amendment bill proposed a few "reforms and adjustments," and that more will be submitted in the middle of 2022.

"Modest improvements have been presented," the minister stated, adding that "additional budgetary reforms are still in the works" because the ministry "could not adopt all of the ideas received from stakeholders."

"Our goal is to conduct a midterm review, with the prospect of introducing a new Finance Bill in mid-year 2022 to incorporate additional revisions," Zainab Ahmed added.

The minister explained that the ministry steered away from VAT and Stamp Duties since there are ongoing legal actions against the federal government in those sectors.

She expressed optimism, however, that by the middle of 2022, the cases will have been resolved, and that improvements in those areas may be offered for parliament's consideration.

Mrs. Zainab Ahmed believes that the parliament may need to reconsider the archaic Stamp Duties and Capital Gains Tax as part of a comprehensive overhaul.

"We developed this draft law around five reform areas: domestic revenue mobilization, tax administration, and legislative drafting, international taxes, financial sector reforms and tax equality, and strengthening public financial management reform."

"The provision in the draft bill proposes to amend the Capital Gains Tax Act, the Company Income Tax Act, the FIRS Establishment Act, the Personal Income Tax Act, the Stamp Duties Act, the Tertiary Education Act, the Value Added Tax Act, the Insurance Police Trust Fund Act, and the Fiscal Responsibility Act."

"The goal of this bill is to authorize the FIRS to collect Nigerian trust fund levies on behalf of the fund itself by amending the Police Trust Fund Act and the Nigerian Trust Fund Acts."

"At this time, the FIRS is unable to begin collecting on behalf of the fund due to the lack of such a provision." It also aims to simplify tax and levy collection from Nigerian businesses in accordance with Mr. President's administration's ease-of-doing-business strategy.


"So instead of NASENI going out to collect the tax, the FIRS would collect it on their behalf throughout their collection procedure and send it on to them," she explained.

The law was a result of President Muhammad Buhari's "promise made while presenting the 2022 budget to the joint session of the National Assembly on October 8, 2021," according to Mrs. Zainab Ahmed.

To write the 2021 Finance bill, he said the ministry collaborated with important parties and the Fiscal Policy Reform Committee.

The 2021 Finance Bill, according to Speaker Femi Gbajabiamila, "seeks to bring strategic and broadminded, constructive changes that will inspire best practices and ensure the interest of the investing public and enterprises."


He stated that the law aims to impose statutory limits on borrowing by local governments, states, and the federal government, as well as improve transparency and accountability in the administration of different tax and public revenue systems.

"It is instructive to state that the essence of the 2021 bill is to further reposition our finance system to plug wastes, close corruption loopholes, create job opportunities, and stimulate stability and growth in our productive sectors, all within the context of our country's quest for economic recovery."

"Given the House of Representatives' democratic credentials, as well as the need to further deepen the credibility of the process through wider stakeholder participation, this stakeholders meeting has been designed to give Nigerians and critical stakeholders in the industry ample opportunity to own and drive the process," he said.

"We have extremely capable professionals and specialists in this room who have filed memoranda and are willing to contribute to the bill as stakeholders, investors, development partners, and interest groups."

"It is against this context that I charge this stakeholders gathering to thoroughly examine the bill's templates in the public interest."

"We must strengthen the institution to strategically limit imprudent borrowings by guaranteeing accountability in the use of borrowed money, ensuring that borrowings are on concessional terms or at relatively low-interest rates, and subject to the most stringent of regulations," he added.

Rep. James Faleke (APC-Lagos state), the committee's chairman, stated that the finance bill is aimed at supporting the economy and the execution of the 2022 budget.

Before the bill is signed into law, he added, all stakeholders would have the opportunity to discuss and contribute to it.

He did, however, urge stakeholders to follow COVID-19 practice and to speak freely on the bill, stating that MPs will examine every point of view stated during the hearing.

Mr. Buhari wrote to the Senate on December 7 encouraging it to study and adopt the Finance (Amendment) Bill 2021.

Mr. Buhari stated that the Finance Bill will lead the execution of the Appropriation Act of 2022, which is expected to be enacted soon.

According to him, the Finance Bill of 2021 aims to help in the execution of the Federal Budget of Economic Growth and Sustainability for 2022 by proposing major reforms to taxes, customs, excise, fiscal, and other pertinent legislation.

The Bill, according to Mr. Buhari, allows for improving domestic revenue mobilization efforts to raise tax and non-tax revenues, as well as Tax and Legislative Drafting Changes, notably to help the Federal Inland Revenue Service's continuing automation reforms (FIRS).

(NAN)

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