Finance Act to promote ease of business, say tax professionals
The Federal Inland Revenue Service (FIRS) has assured business owners of growth and improvement in businesses with the new 2020 Finance Act. They added that the Act will bring to end multiple taxation in Nigeria.
Speaking at a one-day workshop organised by PIC Consulting for business owners in Lagos on the topic, “How the Finance Act Affects Your Business,” FIRS Coordinators in Kwara, Ekiti and Ondo states, Isola Akingbade, said the 2020 Finance Act will address all the issues relating to tax multiplicity in Nigeria.
Akingbade said, contrary to the notion that there was a tax burden in the country; most of the businesses were under taxed. “There are no tax burdens in Nigeria, but all the multiplicity in the tax regime had been taken care of by the 2020 Finance Act, which took effect in February.
“Every Appropriation Act will now come with its different Finance Act to take care of the budget; so any laxity in the previous one will be addressed by the new one.
“The 2020 Finance Act has given concession on some of the tax burdens many are crying about. There is a need to shift our attention from oil revenue tax to non-oil revenue. For example, for the agricultural sector, it is tax-free for the first five years and extension for another three years, which makes a total of eight years,’’ he said.
Akingbade said the constitution provided for most of the taxes that some were complaining about, adding that at times, and companies were under taxed. “People often complain about tax burden under the excuse that they will pay hackney permit, land use charge and others. These are product charges.
The Convener of the workshop and Principal Consultant, PIC Consulting, Mrs. Yomi Adewale, said that the 2020 Finance Act had provided a lot of incentives for business owners.
“The finance workshop enacted and signed into law by our President on January 15, 2020, has a lot of provision in it, which affects our businesses, obligations, and tax environment in Nigeria.
“The act is an improvement, especially with the fact that the government has put it in the right perspective and also improves ease of doing business for small and medium enterprise in Nigeria.
“Although, many will say that the purpose of the act and its essence is to make the government generate more revenue, yes it is one of the objectives, the other objectives are also worthy of consideration.
“The act provisions have supported SMEs in doing business in Nigeria,’’ she said. Partner, Oil, Gas and Power, Anderson Tax, Dipo Maiye, said the Finance Act is capable of promoting the ease of doing business in the country, while promoting fiscal equity by mitigating instances of regressive taxation.
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