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95% Of Informal Sector To Receive Tax Relief Under New Plan — FG

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Taiwo Oyedele, chairman of the presidential fiscal policy and tax reforms committee, says the federal government is working on a system that will provide tax relief to 95 percent of the informal sector.

Oyedele delivered a speech on Sunday during the committee’s last meeting in Abuja.

According to Oyedele, the idea is to free companies with annual revenue of N25 million or less from the different levies that are impeding their development.

‘’So, we think that 95 percent of the informal sector should be legally exempted from all taxes; withholding tax, company income tax, even payee on their staff,” he said.

‘’We’re using data to inform our decisions. Currently, if you earn N25 million a year or less, you don’t have to pay company income tax, you don’t have to worry about VAT.

‘’We think that the informal sector are people who are trying to earn legitimate living, we should allow them to be and support them to grow to a point where they can then have the ability to pay taxes.”

Oyedele said the new reforms being proposed would focus on the top 5 percent of that sector, the middle class, and the elite for taxes.

The tax expert said the committee is drafting the laws to effect the necessary changes in the fiscal policy and tax reform ecosystem of the country.

The new laws, he said, would ensure that reviews become sustained by all governments coming in, adding that “we don’t want this whole effort to go down the drain, after one or two years”.

On compliance, the committee chairman urged

all stakeholders to fully cooperate with the government in implementing a new fiscal and tax policy that would be used for the general good of the citizens.

“We think that the days of being above the law in paying taxes are over. The same thing we’re saying to our leaders, whether they are elected or appointed,” he said.

“We think they have to lead by example by showing that they have paid the taxes, not only on time, but correctly to the lawful authorities as contained in the various laws.”

Oyedele said some of the taxes complained about by Nigerians are those already in the constitution, which the committee has looked at and called for their review.

He said the committee report would be made to pass through the normal process of legislation in order to give it the full legal backing.

“So, our expectation is, as we progress now from ideation, proposal to implementation, you’ll see less and less of those issues and then you’ll see harmony in the direction of the fiscal system,” he said.

‘’Not only in the number of taxes we collect, you will also see an improvement in how those monies are being spent.

Oyedele added that the committee has been working with the sub-nationals and the local government councils in its task of harmonising the taxes into a single-digit system.

“So, we’re convinced, and that’s what the data tells us, that the right path we need to follow is the path where we repeal many of these taxes, harmonise whatever is left,” he said.

“We think we can keep that within single digits across local, state and federal governments combined, and then improve the efficiency of collecting those taxes.

The tax expert said he is convinced that Nigeria needs to increase the threshold of exemption for small businesses, for low income earners “because if they cannot make ends meet, the last thing you want is someone asking you to pay tax”.

BIG STORY

JUST IN: UAE Bans Transit Visas, Imposes Stricter Entry Rules For Nigerians

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The United Arab Emirates has implemented more stringent entry requirements for Nigerian travellers and has fully stopped accepting transit visa applications.

This was confirmed by travel agents on Tuesday.

As stated in the latest directives from Dubai immigration, Nigerians between the ages of 18 and 45 are now ineligible for tourist visas unless accompanied.

Applicants who are 45 years old or older must provide a personal six-month bank statement showing a minimum ending balance of $10,000 (or the equivalent in naira) each month.

Travel agents noted that this policy is expected to significantly decrease the number of Nigerians travelling to Dubai, a major hub for tourism and business.

The notification stated, “For Nigerian nationals, please bear in mind that an applicant aged 18 to 45 years travelling alone is not eligible for the TOURIST VISA CATEGORY.

“An applicant who is 45 years or above must provide a Single Nigerian personal bank statement for a period of the last six months, with each month’s end balance reflecting a minimum ending balance of USD 10,000 or its naira equivalent.

“Kindly note that the above points must be taken into consideration before sending your applications with other existing documents such as hotel reservation, data page, etc.”

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BIG STORY

Dangote Refinery To End Crude Imports By December — Bloomberg Report

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The Dangote Petroleum Refinery plans to stop importing crude oil by December 2025, aiming to replace hundreds of thousands of barrels per day of imported crude with domestic supply.

A Bloomberg report quoted Devakumar Edwin, Vice President at Dangote Industries, who oversees the 650,000-barrel-per-day facility in Lagos, saying that contracts with foreign crude suppliers will expire, allowing the refinery to shift to sourcing feedstock locally.

Edwin stated that the refinery had previously imported crude from Brazil, Angola, Ghana, and Equatorial Guinea. However, he explained that “improved relations between the refinery, local oil traders and the government will result in a steady supply of Nigerian crude.”

The report noted that in June, the plant received about half of its crude from local producers, who will be able to supply more as their foreign commitments wind down.

Edwin said, “We expect some of the long-term contracts will expire. Personally, and as a company, we expect that before the end of the year, we can transition 100 per cent to local crude.”

Data compiled by Bloomberg revealed that in June, the refinery sourced 53 per cent of its crude from domestic producers and 47 per cent from the United States.

Edwin added that the plant is currently processing 550,000 barrels of crude per day.

According to cargo allocations seen by Bloomberg News, Dangote was scheduled to receive five cargoes from the Nigerian National Petroleum Company Limited in July, with the same amount set for August. Each cargo contains nearly one million barrels of crude.

Aliko Dangote constructed the $20 billion refinery to end the export of Nigerian crude for refining abroad and the subsequent importation of refined products.

The gradual ramp-up of the refinery has already enabled Nigeria to become a net exporter of petroleum products, despite initial challenges in securing adequate domestic crude to reach its full capacity of 650,000 barrels per day. This led to the refinery relying heavily on foreign crude.

Dangote recently stated that despite a naira-for-crude deal, the refinery had been largely dependent on crude from the United States.

The refinery expects a notable increase in local crude supply over the coming months.

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BIG STORY

LG Polls: Speaker Obasa Charges Lagos West APC Candidates To Intensify Campaigns, Assures Of The Assembly’s Support

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  • As Lagos Railway Corporation and Ibile Energy Corporation bills scale second reading

 

Ahead of the local government elections holding Saturday, July 12, across the state, Speaker of the Lagos State House of Assembly, Rt. Hon. Mudashiru Obasa met with candidates of the All Progressives Congress (APC), from the Lagos State West Senatorial District at the assembly complex on Tuesday, charging them to knock on all doors and campaign vigorously until the very last day to ensure victory at the polls.

As a show of support, Speaker Obasa contributed generously to the candidates’ campaign purses and assured them of the Assembly’s unstinting support before and after the elections.

At the meeting, which was attended by all the APC chairmen, vice-chairmen, and councillorship candidates, Speaker Obasa urged the candidates not to rest on the party’s laurels but to maintain momentum and outreach efforts until the very last day of campaigning. “Engage with everyone in the community, regardless of their ethnic background or religion,” he implored, while harping on the necessity for candidates to actively supervise those assigned to manage their campaigns.

The Speaker also admonished the candidates to adopt a mindset centred on service to the people when they assume office, adding, “Your focus should be on serving your constituents with integrity and commitment, and you must have respect for democratic institutions and practices.”

Further, he proudly noted that Lagos remains unique among states in the country, as it grants local government chairmen a four-year tenure per term, allowing for more sustained governance and grassroots development.

The meeting concluded with a palpable sense of urgency and resolve among the APC candidates, as they prepare to take their campaigns to the grassroots, embodying the spirit of service and dedication imparted by Speaker Obasa.

Meanwhile, the Lagos State Railway Corporation bill and the IBILE Energy Corporation Bill have scaled the second reading.

According to the Majority Leader, Hon. Noheem Babatunde Adams, who spoke during plenary later on Tuesday, the proposed ‘bill for a Law to establish the Lagos State Railway Corporation to improve Railway Transportation in Lagos State and for connected purposes’, seeks to provide efficient and reliable transportation services, and establish a Governing Board tasked with overseeing the corporation’s operations.

Hon. Adams, the member representing Eti Osa Constituency 1, said, “With South Africa leading in Africa with a 20,926 km railway network and Nigeria currently at 3,798 km, Lagos, as Africa’s second-largest city economy after Cairo, must take the lead in innovative rail transport solutions.” He added that the bill will set up a standard railway corporation comparable to any across the globe.

Similarly, the House also read for the second time, ‘A bill for a Law to establish the IBILE Energy Corporation’, which Hon. Sobur Oluwa, chairman of the House Committee on Energy and Mineral Resources, described as a transformative one for the state’s energy landscape.
“If passed into Law, the corporation will attract innovation, investment, and reshape the energy sector of the State,” he said.

In his remarks, Speaker Obasa commended the essence of the bills and noted that when eventually passed into law, they will mark a significant advancement in the assembly’s efforts to modernize infrastructure and strengthen the state’s economy. He, thereafter, committed the two bills to the committees on Transportation and Energy and Mineral Resources with a mandate to submit their reports at the earliest possible time.

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