The Finance Bill enhances taxation of non-resident individuals and companies that nevertheless derive profit from Nigeria, Buhari says
The Senate on Tuesday received the Finance Bill 2021, transmitted by President Muhammadu Buhari to the National Assembly for consideration and passage.
Special Assistant Media to the President of the Senate, Ezrel Tabiowo, said the request by the President seeking the passage of the bill into law was contained in a letter dated December 7, 2021, which accompanied the bill.
Buhari in the letter explained that the request for the passage of the bill was made pursuant to the provisions of Sections 58 and 59 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
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He explained that the Finance Bill, 2021, seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability by proposing key reforms to specific taxation, customs, excise, fiscal and other relevant laws.
He added that the bill provides for enhanced Domestic Revenue Mobilization efforts to increase tax and non-tax revenues; and ensure Tax Administration and Legislative Drafting Reforms, particularly to support the ongoing automation reforms by the Federal Inland Revenue Service.
Buhari stated that upon passage, the bill would accelerate International Tax Reforms to enhance the taxation of non-resident individuals and companies that nevertheless derive profit from Nigeria. This could see tech companies like Facebook, Twitter and others remitting taxes to the federal government.
The new bill also seeks Financial Sector Reforms to support ongoing capital market reforms relating to Securities Lending Transactions, Real Estate Investment Trusts, Init Trust Schemes and the recapitalisation of Insurance Companies.
He noted that the Finance bill would also prioritize Critical Public Financial Management Reforms regarding the FIRS’ vital role in coordinating tax administration as well as the enforcement of key fiscal rules under the 1999 Constitution, Finance (Control and Management) Act and other relevant laws
