- FIRS Generates N2.11tn Revenue in Seven Months
The Federal Inland Revenue Service, through tax collection, generated the sum of N2.11tn as revenue from January to July this year.
This is contained in a progress report of the FIRS for the period under review obtained by the News Agency of Nigeria on Monday, showing the revenue performance and impact of the new tax regime.
The aggregate revenue projected in the 2017 budget is N4.94tn, out of which oil revenue is expected to contribute N1.98tn.
This is based on an estimated crude oil production of 2.2 million barrels per day at an exchange rate of N305 to a dollar.
Non-oil revenue for the year is projected at N1.37tn, which represents about 28 per cent of the budgeted revenue.
Independent revenues, various recoveries and mining will account for the balance of about N1.58tn.
A breakdown of the report showed that the FIRS collected N720.28bn as Petroleum Profit Tax from January to July this year, while the Value Added Tax revenue collected in the same period was N548.22bn.
The Federal Government had also collected the sum of N679.9bn as Company Income Tax and N91.4bn as Education Tax in the first seven months of the year.
The report also showed that the consolidated tax revenue for the first seven month of the year was N62.3bn, which has already superseded the N59.8bn generated from the area in the entire 2016 financial year.
Also, the service recorded success in boosting its collection of the National Information Technology Development Fund levy, which went from N6.75bn in 2016 to N9.87bn in the first seven months of 2017.
A further analysis of the report showed that the FIRS generated more money from taxing the non-oil sector compared to the oil and gas sector.
The report showed that non-oil tax revenue contribution was at 65.9 per cent, while oil and gas contribution to revenue so far was at 34 per cent.
According to the report, the improvement recorded so far is due to the steps taken by the service to increase tax collection.
The report stated, “The FIRS has adopted e-services as a medium to achieving innovation, convenience and transparency of its operations so as to ensure that every effort is made to improve efficiency in collection and tax administration.
“A 45-day window from October 5 to November 2017 was given to taxpayers with tax liabilities to come forward and pay 25 per cent of the agreed tax liability, spreading the balance liability, while waiving penalty and interest.
“The FIRS, in collaboration with Corporate Affairs Commission, Central Bank of Nigeria and Nigeria Customs Service, undertook a massive nationwide registration exercise of new taxpayers in 2016. We are also carrying out a sector-by-sector tax audit, which has increased compliance across all tax types and taxpayers’ categories. Over N8bn has been recovered through this.
It added, “Also, the Voluntary Assets and Income Declaration Scheme encourages voluntary disclosure of previously undisclosed assets and income for the purpose of payment of all outstanding tax liabilities to boost revenue collection.
“All this will help improve the low tax ratio from six per cent to 15 per cent by 2020, and curb the use of tax havens for illicit funds flow and tax avoidance.”
According to the report, the service is instrumental to the signing of a Bilateral Taxation Agreement on double taxation on income and capital gains.
Dangote Fertiliser Plant to Commence Shipment of Urea in March 2021
Dangote to Sells Petrol in Naira, Plans to Commence Urea Shipment in March 2021
The Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, has said Dangote Fertiliser Plant will commence shipment of Urea in March 2021.
The CBN governor disclosed this during an inspection tour of the sites of Dangote Refinery, Petrochemicals Complex Fertiliser Plant and Subsea Gas Pipeline at Ibeju Lekki, Lagos on Saturday.
Emefiele further stated that Dangote Refinery would sell refined petroleum products in Naira when it starts production.
This he said would save the country from spending 41 percent of the nation’s foreign exchange on importation of petroleum products yearly.
“Based on agreement and discussions with the Nigerian National Petroleum Corporation and the oil companies, the Dangote Refinery can buy its crude in naira, refine it, and produce it for Nigerians’ use in naira,” Mr Emefiele said.
“That is the element where foreign exchange is saved for the country becomes very clear. We are also very optimistic that by refining this product here in Nigeria, all those costs associated with either demurrage from import, costs associated with freight will be totally eliminated.”
Emefiele explained that this will make the price of Nigeria’s petroleum products affordable and cheaper in naira.
“If we are lucky that what the refinery produces is more than we need locally you will see Nigerian businessmen buying small vessels to take them to our West African neighbours to sell to them in naira.
“This will increase our volume in naira and help to push it into the Economic Community of West African States as a currency,” Mr Emefiele said.
UK Budget 2021: Will Sunak’s Budget Run Into Unintended Consequences?
Rishi Sunak’s Budget will encourage higher earners to consider their “international financial options” and will drive businesses away from the UK, warns the CEO of one of the world’s largest independent financial advisory and fintech organizations.
The warning from Nigel Green, chief executive and founder of deVere Group, comes as the Chancellor delivered his 2021 Budget in the House of Commons, his second since he took on the role.
Mr Green says: “The Chancellor has got an extraordinarily difficult hand to play as he tries to stem the economic damage caused by the pandemic, support jobs and businesses and, crucially, rebuild the public finances.
“Whilst Mr Sunak is being hailed a hero for the continued and unprecedented levels of support, it should also be remembered that he is – in a stealth move – dragging more people firmly into the tax net.
“He is raising taxes under the radar.
“Yes, there is no income tax rise. However, he is freezing personal tax thresholds, meaning as incomes rise and thresholds don’t, he is able to raise money by fiscal drag.”
Earlier this week, the deVere CEO noted: “Those most impacted by this stealth move will be looking at the financial planning options available to them, including international options, in order to grow and protect their wealth.”
Rishi Sunak also confirmed that corporation tax will increase to 25% from 2023, up from the current level of 19%.
Of this tax hike, Mr Green goes on to say: “Lower corporation tax helps job and wealth-creating business to survive and thrive. It also helps attract business to move and invest in the country.
“Instead of increasing taxes, Mr Sunak should have relentlessly focussed on growth and stimulus policies for businesses. This would have been of greater help to firms, the economy, jobs and, ultimately, the Treasury’s coffers.”
He adds: “Again, this corporation tax hike is likely to serve as a prompt for businesses to consider their overseas financial options.”
The deVere CEO concludes: “The Chancellor had to perform a tough juggling act. But stealthily dragging more people into the tax net and raising corporation tax might have negative, unintended consequences for the Treasury’s bottom line.”
Electricity Consumers Get 611,231 Meters Under MAP Scheme
Electricity Consumers Get 611,231 Meters Under MAP Scheme
A total of 611,231 meters have been deployed as at January 31, 2021 under the Meter Asset Provider initiative since its full operation despite the COVID-19 pandemic and other extraneous factors, the Nigerian Electricity Regulatory Commission has said.
NERC disclosed this in a consultation paper on the review of the MAP Regulations.
The proposed review of the MAP scheme is coming nearly four months after the Federal Government launched a new initiative called National Mass Metering Programme aimed at distributing six million meters to consumers free of charge.
“The existence of a huge metering gap and the need to ensure successful implementation of the MYTO 2020 Service-Based Tariff resulted in the approval of the NMMP, a policy of the Federal Government anchored on the provision of long-term low interest financing to the Discos,” NERC said.
The commission had in March 2018 approved the MAP Regulations with the aim of fast-tracking the closure of the metering gap in the sector through the engagement of third-party investors (called meter asset providers) for the financing, procurement, supply, installation and maintenance of meters.
It set a target of providing meters to all customers within three years, and directed the Discos and the approved MAPs to commence the rollout of meters not later than May 1, 2019.
But in February 2020, NERC said several constraints, including changes in fiscal policy and the limited availability of long-term funding, had led to limited success in meter rollout.
NERC, in the consultation paper, highlighted three proposed options for metering implementation going forward.
The first option is to allow the implementation of both the NMMP and MAP metering frameworks to run concurrently; the second is to continue with the current MAP framework with meters procured under the NMMP supplied only through MAPs (by being off-takers from the local manufacturers/assemblers).
The third option is to wind down the MAP framework and allow the Discos to procure meters directly from local manufacturers/assemblers (or as procured by the World Bank), and enter into new contracts for the installation and maintenance of such meters.
“Customers who choose not to wait to receive meters based on the deployment schedule of the NMMP shall continue to have the option of making upfront payments for meters which will be installed within a maximum period of 10 working days,” NERC said.
The regulator said such customers would be refunded by the Discos through energy credits, adding that there would be no option for meter acquisition through the payment of a monthly meter service charge.
“Where meters have already been deployed under the meter service charge option, Discos shall make one-off repayment to affected customers and associated MAPs. Such meters shall be recognised in the rate base of the Discos,” it added.
NERC urged stakeholders to provide comments, objections, and representations on the proposed amendments within 21 days of the publication of the consultation paper.
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