Nigeria Economy | |
Nigeria Economy | |
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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.
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