The Federal Executive Council (FEC) has approved two Executive Orders and five Amendment Bills touching on key provisions in the Nigerian tax and regulatory legislation.
The Minister of Finance, Mrs. Kemi Adeosun, stated this while briefing State House correspondents at the end of the Council's meeting which was presided over by President Muhammadu Buhari at the Presidential Villa, Abuja on Wednesday, 6th June, 2018. The overall aim of the new Executive Orders and amendment bills is to improve the ease of doing business in Nigeria by simplifying tax payment which will increase government revenue and ultimately grow the economy.
The approval followed the presentation of the memorandum by the National Tax Policy Implementation Committee (NTPIC), set up in April 2017 to carry out reviews of tax laws and regulations in accordance with the revised National Tax Policy while taking into consideration the Economic Recovery and Growth Plan (ERGP) and the Ease of Doing Business Plan.
The approved Executive Orders and Amendment bills are listed below:
- Value Added Tax Act (Modification) Order
- Review of Goods Liable to Excise Duties and Applicable Rates Order, 2017
- Companies Income Tax Act (Amendment) Bill
- Value Added Tax Act (Amendment Bill)
- Customs, Excise, Tariff etc. (Consolidation) Act (Amendment) Bill
- Personal Income Tax Act (Amendment) Bill
- Industrial Development (Income Tax Relief) Act (Amendment) Bill
Consequently, the provisions of the Value Added Tax Act (Modification) Order exempt life insurance premiums, residential property leases or rentals and transport services for use by general public from Value Added Tax (VAT).
In addition, the Review of Goods Liable to Excise Duties and Applicable Rates Order provides legislative backing to approved changes to the rates and bases for levying excise duties on alcoholic beverages and tobacco, amongst others.
The changes were earlier communicated via a circular issued by the Minister of Finance, which became effective on 4 June 2018.
The Bills will not have the force of the law until they have been reviewed and enacted by the National Assembly as such Taxpayers and other stakeholders are advised to review the proposed amendments in more detail to ensure all relevant and crucial issues are addressed before the Bills are enacted.
While the modifications contained in the two Executive Orders will take effect as communicated in the Orders.