The Senate yesterday passed the Finance Bill 2021, transmitted to the National Assembly by President Muhammadu Buhari, on December 7, 2021.
The passage by the Upper Chamber of the National Assembly, followed the consideration of a report by the Senate Joint Committee on Finance; Customs, Excise and Tariff; Trade and Investment.
One of the major highlights of the Bill is the aspect empowering the Federal Inland Revenues Service (FIRS) to assess non-resident firms like Twitter, Facebook, Google, and Netflix, among others.
They are to be taxed on fair and reasonable turnover earned from digital services to Nigerian customers.
The Finance Bill further mandates FIRS to appoint persons for the purpose of collection and remittance of non-resident taxes.
In his presentation, Chairman of the Joint Committee, Senator Solomon Adeola, said the Bill seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability by proposing key specific taxation, such as Customs Duties, fiscal charges and other relevant laws.
Adeola, representing Lagos West, said a total of 12 Acts were amended under the Finance Bill which contains 39 clauses.
He said the Bill seeks to promote fiscal equity, align domestic tax laws with global best practices, introduce tax incentives for infrastructure and the capital market and support small businesses with a view to increasing government’s revenue.
“The Finance Act 2020 was predicated essentially on having no new taxes and no new incentives due to the COVID -19 impact on the economy, as such, it was structured across four broad thematic areas; Enacting counter cyclical measures and crisis intervention initiatives; Tax, fiscal responsibility and public procurement reforms; Reforming fiscal incentives policies for job creation; ensuring closer coordination of monetary, trade and fiscal policies and Enhancing tax administration,” Adeola said.
The committee based on its observations, recommended five per cent Capital Gains Tax to be imposed on shares’ disposal transactions where gains exceed N250 million in 12 months.
