VenturesNow

Nigeria: Presidential tax panel wants ‘nuisance tax’ abolished

Published

10 months ago

January 22, 2024

Nigeria’s Presidential Committee on Fiscal Policy and Tax Reforms wants states to suspend some low-revenue taxes.

The panel, constituted shortly after President Tinubu’s inauguration, is expected to support tax reforms and assist the country in obtaining the necessary tax income to support economic development.

This committee chairman, Taiwo Oyedele, in an interview on Sunday, predicted that states and local governments across the nation would stop imposing “nuisance taxes” as a result of the action. Oyedele said that the low-revenue levies were not bringing in more money for the state.

The term “nuisance tax” refers to the kind that is applied as a percentage of the selling price of products or services, paid by the buyer, and forwarded by the vendor to the relevant taxing body.

The head of the tax panel bemoaned the fact that the poor were disproportionately affected by most taxes, particularly those imposed on the movement of products from the North to the South and vice versa.

He said, “We are asking states to suspend nuisance taxes that just create problems, with very little revenue to show for it. We are already meeting with their governors, and in some cases, we have set up small committees to discuss with their teams. So once the thing is signed, there won’t be any excuse, it is to be implemented the next day.”

Citing data from the National Bureau of Statistics, Oyedele also voiced concern over local governments reporting less than N50 billion in revenue collection for 2022.

Oyedele provided updates on the committee’s work in an effort to address these issues. He declared that the Federal Executive Council would likely get the Emergency Economic Intervention Bill, which is a crucial part of the tax reform plan. He stated that the bill would move on to the National Assembly after receiving the FEC’s approval.

The Nigerian government has been working to overhaul the nation’s monetary and fiscal policies since the start of the Bola Tinubu administration. This has resulted in the central bank and the Oyedele-led tax advisory council implementing daring new policies.

Related Topics:Featured Nigeria Taiwo Oyedele Tax Reform

Click to comment

VenturesNow

Food prices drive second straight monthly hike in Nigeria’s inflation

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

According to official statistics released on Friday, Nigeria’s inflation rate increased for the second consecutive month in October, rising to 33.88% in annual terms from 32.70% in September, mostly as a result of increasing food costs.

In an attempt to boost economic development and strengthen public finances, President Bola Tinubu devalued the naira and reduced subsidies, which caused inflation to spike in the second half of last year.

As the effects of the naira devaluation started to lessen in July of this year, a slew of hikes in the price of petroleum and devastating floods that destroyed crops once again exacerbated pricing pressures, making the greatest cost-of-living crisis in decades worse in Africa’s most populous country.

According to the National Bureau of Statistics, price increases for basics such as rice, maize, bread, potatoes, and cooking oil prompted food inflation to surge from 37.77% in October to 39.16% year over year.

This year, more than 1.5 million hectares of agriculture have been damaged by torrential rain and floods in 29 of Nigeria’s 36 states, leaving millions hungry and displacing large numbers of people.

In an effort to curb inflation, the central bank has raised interest rates five times this year. On November 26, it is expected to make its final rate decision of the year.

VenturesNow

MTN financial report reveals drop in group service revenue

Published

2 days ago

November 17, 2024

Ifeoluwa Dada

Due to operational difficulties in Sudan and the depreciation of the Nigerian naira, MTN Group, Africa’s largest telecom provider, announced on Thursday an 18.5% decline in service revenue for the third quarter that concluded on September 30.

With 288 million users in 17 African regions, MTN said that its group service revenue dropped from 156.3 billion rand ($6.99 billion) in the same quarter of the previous year to 127.4 billion rand.

Despite stating that “the naira was less volatile on a sequential basis in Q3 than in preceding quarters,” the business reported a 48.7% decline in MTN Nigeria’s income due to the currency’s depreciation.

Due to a stronger Ugandan shilling than the previous year, Uganda’s largest contributor, MTN South Africa (MTN SA), expanded by a meagre 3.3%.

Due to “subscriber registration regulations in Nigeria and a decline in users in Sudan, where the conflict has displaced millions of people,” the business reported that its subscriber base increased by 1.6% to 288 million.

Given the higher demand in Nigeria despite the legal obstacles, MTN plans to increase its capital expenditures, which it expects would total between 28 and 33 billion rand for the entire year.