Connect with us

Business

FIRS Explains Tax Waivers on Penalties

Published

on

tax relief
  • FIRS Explains Tax Waivers on Penalties

The Federal Inland Revenue Service (FIRS) yesterday explained that its recent decision to grant tax waivers on penalty and interest was part of the federal government efforts to improve the ease of doing business among micro, small and medium scale enterprises (MSMEs) in the country.

The waiver to MSMEs on tax penalties and levies is from 2013 to 2016.

Speaking yesterday in Lagos at a public-private dialogue (PPD) which focused on: “Tax and regulatory policy framework for MSMSE in Nigeria,” organised by the National Association of Small and Medium Enterprises (NASME) with the support of Deloitte and Enable2, the Chairman of FIRS, Mr. Babatunde Fowler, noted that in terms of the waivers, MSMEs have to apply before the close of the window on December 31, while adding that another condition which the MSMEs have to fulfill was the payment of 25 percent of the outstanding taxes.

He stated that it was the desire of the federal government to give waivers on interests and penalties to MSMEs, stressing that the government was working to reduce the tax burden on the citizens. He expressed optimism that before the end of the year, the new tax law will become effective.

Fowler explained that due to the nature of business and the level of record keeping of MSMEs, his agency decided to give them extra time to present their records. The FIRS boss said his agency would also educate the MSME operators on all the charges, dues, levies or even penalties are not taxes.

He added: “Going forward we believe by next year everyone should be complying in terms of taxes, and the issues of tax holidays will not arise.

We have also deployed technology free of charge to all states of the federation, including the state government so that the tax portion can be remitted directly; even the state tax and the federal portion are remitted directly.

“Within the allowable structures, we will assist the states through programme capacity; we have to understand that there is a little federal and the state can do. They have their own constitutional independence; therefore there is a limit to how far we can go.

“The federal government does have the MSMEs as it number one priority because we believe that for any economy to work, you (MSMEs) have to work. Those who have assets in excess of 300 million are at the top scale. In terms of the waivers, the taxing authorities in Nigeria are distinct. We do have the prerogative to make policy on the federal taxes.

“The state’s internal revenue service boards are totally autonomous and they also have to make separate policies. This has slowed the duplication of taxes in Nigeria. What we have discovered is that there are now illegal charges collected by some officials who call themselves revenue operators at the local government level.”

In her remark, the Minister of Finance, Mrs. Kemi Adeosun, represented by the Director of Technical Service Department, Hajia Larai Shuaibu, noted that as part of measures to encourage businesses with a tax system that is easy to understand, the government constituted the National Tax Policy Review Committee (NTPRC) to review the National Tax Policy Document.

She stated that the exercise was setup with a view to addressing the modalities for simplifying the processes and reducing the tax burden on small businesses.

Adeosun called for the review of qualification for lower income tax rate applicable to small businesses in line with current economic realities, adding that the income tax rate for small businesses should be further reduced as an incentive to encourage compliance and promote MSMEs.

She noted that the review would be a continuous exercise, as a means of evolving global best practices and keeping with the domestic socio-economic realities. According to her, government has initiated the process of working towards having some recommendations of the committee as part of its 2017 fiscal Policy Measures.

The Minister added: “The Ministry of finance shall work with the legislature to ensure that the requisite changes to tax laws are enacted together with the Appropriation Act of the same year. This would require the executive to timely present the tax laws as executive bill for the timely consideration of the National and State Houses of Assemblies.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Company News

Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

Published

on

Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

Continue Reading

Business

Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

Published

on

Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

Continue Reading

Business

Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

Published

on

Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending