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The Nigeria Emergency Stimulus Bill Passes Second Reading at House of Reps - For The Records

Nigeria Economy	1418 VIEWS
Nigeria Economy
1418 VIEWS

Wednesday, March 25, 2020 /01:48 PM / By House of Reps / Header Image Credit: @HouseNGR

Emergency Economic Stimulus Bill 2020

A Bill for an Act to Provide for Relief on Corporate Tax Liability, Suspension of Import Duty on Selected Goods and Deferral of Residential Mortgage Obligations to the Federal Mortgage Bank of Nigeria for a fixed term to protect jobs and alleviate the financial burden on citizens in response to the economic downturn occasioned by the outbreak of COVID-19 disease and for related matters.

Sponsors: Rep. Femi Gbajabiamila, Rep. Ahmed Wase, Rep. Alhassan Ado Garba, Rep. Peter Akpatason, Rep. Mohammed Tahir Monguno, Rep. Nkiruka Onyeajocha, Rep. Ndudi Godwin Elumelu, Rep. Toby Okechukwu, Rep. Gideon Gwani Lucas, Rep. Adesegun Adekoya Abdul Majid

Be it enacted by the National Assembly of the Federal Republic of Nigeria as follows:

Part 1 - Aims, Objectives And Application

1. The Aims and objectives of this Act are: -

a) To provide temporary relief to companies and individuals to alleviate the adverse financial consequences of a slowdown in economic activities brought on by the outbreak of the Covid - 19 Disease in Nigeria;

b) To protect the employment status of Nigerians who might otherwise become unemployed as a consequence of management decision to retrench personnel in response to the prevailing economic realities;

c) To provide for a moratorium on mortgage obligations for individuals at a time of widespread economic uncertainty;

d) To eliminate additional fiscal bottleneck on the importation of Medical Equipment, Medicines, Personal Protection Equipment and other such medical necessities as may be required for the treatment and management of the Covid - 19 Disease in Nigeria, to ease the burden of importation and financial burden, thereby fostering easier access and reduction in the price; and

e) To cater to the general financial wellbeing of Nigerians pending the eradication of this pandemic and a return to economic stability.

2. The provisions of this Act shall apply throughout the Federal Republic of Nigeria.

Part 2 - Rate Of Tax And Special Tax Rebate

3. Notwithstanding the provision of any other law in force in Nigeria, any employer duly registered under Companies and Allied Matters Act (CAMA) Cap C20 LFN 2004, which maintains the same employee status without retrenching their staff as at 1st of March 2020 till the rest of the year ending 31st of December 2020 shall be entitled to 50 per cent income tax rebate on the total of the actual amount due or paid as Pay As You Earn (PAYE) Tax under the Personal Income Tax Act Cap C8 LFN 2004 (as amended).

4. The following circumstances shall not preclude the rebate to employers under this section:

a) Where an employee dies of natural causes;

b) Where employee voluntary leaves the employment or has already indicated interest to leave the employment before 1st of March 2020; or

c) Where the employee breaches the Labour Act Cap L1 LFN 2004.

5 Under this section, the following words shall be interpreted as:

"Rebate" shall mean 100 per cent refund of employer's income tax which shall be 50 per cent of PAYE Tax due or paid on employees of such employer who maintain the same status of employees from 1st of March 2020 till 31st of December or such further period as the President may stipulate.

"Employers" shall mean and be interpreted to include entities registered both in Part A and Part B of CAMA.

6. Section (3) of this Act does not apply to employers partly or wholly under the Petroleum Profit Tax Act Cap P13 LFN 2004.

7. The President of the Federal Republic of Nigeria shall have the power to extend the rebate period for the duration during which the COVID-19 disease remains an urgent and severe public health emergency, subject to ratification by a majority of the members of the National Assembly.

Part 3 - Deferral Of Payment Of Mortgages Under The National Housing Fund

8. Notwithstanding the provisions of National Housing Fund Act 2018 or anything contained in any other Act, law or regulation in force in Nigeria, all payment of mortgage obligations on residential mortgages obtained by Page 4 of 5 individual contributors to the National Housing Fund are hereby deferred for a period of One Hundred and Eighty (180) days effective from the 1st of March 2020.

9. The President shall have the power to seek a further extension of the deferral for a period not exceeding One Hundred and Eighty (180) days, subject to approval by the National Assembly

Part 4 - Import Duty Waiver On Medicines And Medical Goods

10. Notwithstanding anything contained in any other Act, law or regulation in force in Nigeria, import duty waiver is hereby granted on Medical Equipment, Medicines, Personal Protection Equipment and other such medical necessities as may be required for the treatment and management of the Covid - 19 Disease in Nigeria.

11. The Minister of Health shall by regulations published in the Gazette specify such goods that qualify under this section.

12. The import duty waiver under this section shall take effect from the 1st of March 2020 and shall remain in force until the 30th of June 2020.

13. The President may exercise his powers under Section 13 (1) (a) of the Customs, Excise, Tariffs, etc., (Consolidated) Act to further extend this waiver.

14. This Bill may be cited as the Emergency Economic Stimulus Bill 2020.

Explanatory Notes

This Bill seeks to Provide for Relief on Corporate Tax Liability, Suspension of Import Duty on Selected Goods and Deferral of Residential Mortgage Obligations to the Federal Mortgage Bank of Nigeria for a fixed term to protect jobs and alleviate the financial burden on citizens in response to the economic downturn occasioned by the outbreak of COVID-19 disease and for related matters.