Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In Proshare - RSS Feed

Nigeria Has A New National Tax Policy

Taxation
1797 VIEWS
Proshare - Facebook Proshare - Twitter Proshare - Google+ Proshare - Linked In
Proshare

Monday, March 06, 2017  9.30AM / PwC Nigeria website

The Federal Executive Council, the highest Executive decision making organ in Nigeria, yesterday approved a new National Tax Policy for the country. The Policy will now be endorsed by the National Economic Council to recognize the Federal System of Government given the application of the Policy to all tiers of government.

The National Tax Policy (NTP) establishes fundamental principles to guide an orderly development of the Nigeria tax system and reinforces the need for tax laws and administrative practices to promote economic development.

When fully implemented, the Policy should address key challenges confronting the Nigeria tax system including:

1.       low tax to GDP ratio

2.      fragmented database of taxpayers and weak structure for exchange of information

3.      multiplicity of taxes and revenue agencies

4.      poor accountability for tax revenue

5.      use of aggressive and unorthodox methods for tax collection

6.      failure by tax authorities to honour refund obligations to taxpayers

7.      the non-regular review of tax legislation, which has led to obsolete laws, that do not reflect

8.     current economic realities

 

Some of the key recommendations include to address the challenges include:

1.       ensuring that there is only one revenue agency per level of government

2.      establishment of a tax court as an independent body to adjudicate in tax matters

3.      lower tax rate and VAT compliance threshold for SMEs

4.      establishment of an Office of Tax Simplification for continuous improvement to tax legislation and administration and develop Key Performance Indices for Nigeria to attain a top 50 position on the global index of ease of paying taxes by 2020 and consistently improve on the ranking

5.      administrative framework for amnesty and whistle blowing as part of the strategies for curbing evasion and widening the tax net

6.      INEC to mandate political parties to articulate, prepare, provide and make public their tax agenda before and during election campaigns

 

The approved Policy also contains and appendix of changes required to existing laws, repeals and new enactments.

Downloads

Download the FEC Approved NATIONAL TAX POLICY (2016)


Download APPENDIX - List of National Tax Policy (NTP) Laws & Regulations Recommended for Review & Amendment and the Justifications

 

Related Tax Post Available From PwC

1.       Provisional Tenement Rates to be introduced in the FCT

2.      FIRS seeks to enforce compliance with Stamp Duties Act

3.      Nigeria has a new National Tax Policy

4.      2017 Tax & Fiscal Policy Prospects

5.      Impact of import tariff reduction on the economy

6.      2016 in retrospect: A review of the major tax events of the year

 

Related News

1.       More Taxpayers Rather Than Higher Rates

2.      FGN is not increasing taxes, Udoma tells National Assembly

3.      2017 Tax & Fiscal Policy Prospects

4.      2016 Fiscal Policy Measures - How Changes in Tariffs Affect You

5.      2016 in Retrospect - A Review of The Major Tax Events of The Year

6.      Impact of Tariff Reduction Expected To Be Muted In The Near Term

7.      Pres. Buhari Approves 2016 Fiscal Policy Measures; Reduces Import Duty Rates on 91 Items

8.     Court of Appeal says No Stamp Duties on Bank Deposits, Overrules Federal High Court

9.      Tax Amnesty Indonesia: Regulations for Asset Repatriations Eased

10.  Key Game Changer - Nigeria to Link Bank Accounts with Tax Numbers

11.   FIRS Grants Waivers on Penalty and Interest on 2013-2015 Tax Liabilities

12.  Time is Now – Why You Must Engage Results Driven Tax Consultants

Related News