The Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, said the federal executive council (FEC) has approved the introduction of Tax Identification Consolidation and Collaboration (TICC) aimed at making more Nigerians pay tax.
This was part of the Economic Stabillisation Bills (ESB) approved during Monday’s FEC meeting and would be transmitted to the National Assembly.
Oyedele revealed the development in a post shared on his social media handle which was seen by NewsNGR.
The tax expert said the ESB contains some recommendations from the Tax Reforms Committee as part of the government’s Accelerated Stability and Advancement Plan (ASAP).
He said the ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth.
Oyedele said some of the proposed changes in the ESB include amendments to the income tax laws to facilitate employment opportunities for Nigerians in Nigeria within the global value chain, including the digital economy.
According to him, the bill will put in place a, “Tax Identification Consolidation and Collaboration (TICC) initiative to expand the tax base, widen the tax net, and create a level playing field for businesses.”
He said the bill recommends zero rated VAT and an improved incentive regime to promote exports in goods, services, and intellectual property.
Oyedele noted, “Amendments to facilitate investment in the gas sector and simplify the local content requirements to ensure competitiveness.
“Reform of the foreign exchange regime to enhance the regulatory powers of the CBN, unlock more forex liquidity, strengthen the naira, and sustain rates convergence.”
The chairman said the ESB recommends tax reliefs for private sector employers in respect of wage awards and transport subsidies provided to their employees.
According to him, the bill also proposes a tax relief to companies that generate incremental employment and retain such employees for a minimum of 3 years.
He added, “Fiscal discipline and enhancement of remittances from government agencies and corporations to the Consolidated Revenue Fund of the federal government.
“Collaboration with states to suspend certain taxes on small businesses and vulnerable population such as road haulage levies and other charges on transportation of goods; business premises registration; animal trade and produce sales tax; bicycle, truck, canoe, wheelbarrow, and cart fees; shops, kiosks and market taxes and levies.”