- FG, States Working to Address Multiple Taxation
The Minister of Industry, Trade and Investment, Dr. Okechukwu Enelamah, has said the federal government is currently working through the National Economic Council in collaboration with state governments to streamline the multiple taxes paid by businesses particularly the small and medium enterprises (SMEs).
He also said the implementation of the Export Expansion Grant (EEG) had resumed since 2018, after the programme was suspended at the inception of the current administration adding that the scheme had now been streamlined to avoid abuse and irregularities which marred it in the past.
Addressing journalists over the weekend about the strides made by ministry in transforming the business environment in the past four years, the minister also said efforts were ongoing to make the Kano and Calabar Free Trade Zone operational.
He said though the Kano free trade zone had been underutilised, the ministry has, “taken several steps to make it better and the result will soon start showing.”
He added: “One is to upgrade the infrastructure because it has dilapidated and that upgrade has been going on for the last two years.
“We have reached an agreement that we are basically going to work with private operators both for Kano and Calabar and we are going through a process involving working with the Bureau of Public Enterprises to identify the right operators to partner with us to commercialise and provide the services including marketing services to bring in those who want to operate.
“We are showcasing these zones to investors who are coming in. The efforts of this government and ministry will bear long range enduring results because I know we are now solving the problems fundamentally and you will agree with me this is the right way to solving the problem.”
The minister said the ministry had improved the operational environment for businesses in the country and supported the growth of SMEs as well as contributed significantly in the attraction of more foreign investment into the country in the last four years.
He said while the removal of bottlenecks had enhanced a reduction of challenges encountered by SMEs and other businesses in areas such as starting a business; access to credit; paying taxes; enforcing contracts or trading within and across borders among others, investor interest in the country had also increased.
He, reiterated his promise on resumption of duty that the vision for the ministry would be for it to be seen as a ministry of enabling environment.
To this end, he said through the Presidential Enabling Business Environment Council (PEBEC), the Ministry had made remarkable achievements, which included the jump in the World Bank’s ranking on the Ease of Doing Business; and the removal of several bottlenecks in government processes.
He added that efforts were ongoing to further improve on the achievements towards ensuring a more business-friendly environment and to achieve a sub-100 ranking of the World Bank on Ease of Doing Business.
He added that the ministry had aggressively been implementing the Nigeria Industrial Revolution Plan and the establishment of the Nigeria Industrial Policy and Competitiveness Advisory Council is yielding results.
He noted that the council had made many high-level interventions to address industrial sector issues such as electricity supply, broadband penetration and access roads.
The Highest Corporation Taxes Around the World and the Main Drivers Behind them
Taxes Pay by Corporation Around the World and the Main Drivers Behind them
While corporation tax rates are influenced by the country’s definition, there’s clearly a pattern with developing countries and emerging economies paying higher rates to sustain the country.
The top five richest countries in the world’s corporation tax are relatively varied, with Luxemburg standing at 27.08%, Norway at 22%, Iceland at 20%, Switzerland at 18% and Ireland at 12.5%. It would appear that some countries’ cultures factor into how much tax they pay. For example, Scandinavian countries are proud to pay higher taxes to contribute to social welfare.
On average, Africa has the highest corporation tax rate throughout the world’s continents at 28.45% and South America, the second highest with an average rate of 27.63%. However, Europe stands at the lowest rate of 20.27%. Does this contradict the claim that developed countries pay higher tax?
OECD explained that corporation tax plays a key part in government revenue. This is particularly true in developing countries, despite the global trend of falling rates since the 1980s. Let’s take a closer look at two continents, South America and Africa, paying the highest corporation tax rates in the world.
South America has most countries in highest corporation tax top 10
According to data analysed, Brazil and Venezuela have the highest corporation tax at 34%, followed closely by Colombia at 33%, and Argentina at 30%, making South America the continent with the most countries in the top 10 who pay the highest corporation tax.
It is unclear whether South America, as an emerging continent, is charging higher taxes in order to raise government revenue or to benefit from businesses that are looking to expand internationally and enter new markets. According to research, South America is becoming a popular choice for business to enter, with strong trade links and an advantageous geographic location. Indeed, South America is a large continent where some countries are business friendly and others are harder to penetrate.
Africa: the continent with the highest average corporation tax
Being the poorest continent in the world, Africa unsurprisingly has the highest average corporation tax at 28.45%. With the highest in this data being Zambia at 35% and the lowest being Libya and Madagascar at 20%, South Africa stands roughly in the middle at 28%, slightly above average for Africa overall. Does this mean that South Africa is the safest bet for business?
South Africa is one of Africa’s largest economies, with 54 diverse countries in terms of political stability, development, growth, and population. As South Africa has been a relatively slow growth area over the years, corporation tax dropped from 34.55% in 2012 to the current rate — but was this effective? GDP in South Africa has fluctuated quite dramatically since the 1960s. Business favours countries with political stability, which is something South Africa doesn’t currently have. Furthermore, South Africa’s government debt to GDP sits roughly in the middle of the continent’s countries — is this influencing their corporate tax rate?
|Puerto Rico||North America||37.5|
|Sri Lanka||Asia Pacific||28|
|New Zealand||Asia Pacific||28|
|South Korea||Asia Pacific||25|
|United States||North America||21|
|Saudi Arabia||Middle East||20|
|Hong Kong||Asia Pacific||16.5|
Lucy Desai is a content writer at QuickBooks, a global company offering the world’s leading accountancy software.
Nigeria’s Crude Oil Production Declined to 1.31mbpd in September
Nigeria’s Crude Oil Output Declined from 1.37mbpd in August to 1.31mbpd in September
The Organisation of the Petroleum Exporting Countries (OPEC) reported that Nigeria’s crude oil production declined by 58,000 barrels per day in the Month of September when compared to the nation’s oil production of August.
In its latest oil market report, the cartel said Nigeria produced 1.37 million barrels per day in the month of August but that number declined by 58,000 to 1.31 million barrels per day in September. Bringing the total decline for the 30 days of september to 1.74 million barrels.
On oil price movement in September, the organisation said prices settled lower in the month under review after four consecutive months of gains.
OPEC Reference Basket declined by 8.1 percent or $3.65 in September to $41.54 per barrel, while it moderated to $40.62 per barrel from the year-to-date.
Commenting on the recent changed in Nigeria’s monetary policy rate, the oil cartel said “the recent cut is a part of the policy to continue supporting the economy that plunged 6.1 per cent in the second quarter hit by the global pandemic.
“Nevertheless, Nigeria’s annual inflation rate surged to the highest rate since March 2018 in August 2020, as it rose to 13.22 per cent year-on-year from 12.82 per in in July.”
Oil prices sustained bullish trend on Thursday after data showed U.S oil inventories declined last week.
Global Economy to Lose $28 Trillion in Five Years -IMF
International Monetary Fund Says Global Economy May Lose $28 Trillion in the Next Five Years to COVID-19
The International Monetary Fund (IMF) has said the world’s economy may lose as much as $28 trillion to COVID-19 in the next five years.
The Fund’s Managing Director, Kristalina Georgieva, disclosed this during her opening remarks at the annual general meeting conference held on Wednesday.
She said “The picture over the last few months has become less dire, yet we continue to project the worst global recession since the great depression.
“Growth is expected to fall to -4.4 per cent this year. And over the next five years, the crisis could cost an estimated $28tn in output losses.
“At the same time, we can see stars shining above us. We see unprecedented efforts in vaccine development and treatment.
“We see extraordinary and coordinated fiscal and monetary measures putting a floor under the world economy. And the world is starting to learn how to live with the virus.
“While there is tremendous uncertainty around our forecast, we project a partial and uneven recovery in 2021, with growth expected at 5.2 per cent.”
“As I said in my curtain raiser speech, all countries now face a “long ascent”—a journey that will be difficult, uneven, uncertain, and prone to setbacks.
“Think of how the virus is resurging in a number of countries.”
She also made recommendations, the managing director explained that an unusual crisis requires an unusual approach and solution.
Georgieva said, “In our Global Policy Agenda, which we are releasing today, we outline the measures we believe are needed to overcome the crisis and build a brighter future. Let me highlight three priorities:
“First—continue with essential measures to protect lives and livelihoods.
“A durable economic recovery is only possible if we beat the pandemic everywhere. Stepping up vital health measures is imperative.
“As is fiscal and monetary support to households and firms. These lifelines—such as credit guarantees and wage subsidies—are likely to remain critical for some time, to ensure economic and financial stability.
“Pull the plug too early, and you risk serious, self-inflicted harm.”
Forex2 weeks ago
Naira Improves Against Global Counterparts on Black Market
Business4 weeks ago
Npower News on Permanency for Batch A, B
Business1 week ago
Buhari Budgets N420 Billion for Npower, Other Social Investment Programmes in 2021 Budget
News4 weeks ago
Jumia Boss Juliet Anammah is Now Flour Mills Board of Director
Cryptocurrency4 weeks ago
Paxful to Build School in Nigeria Under Its 100 School Initiative to Support Emerging Markets
Technology4 weeks ago
Dell Partners Other Firms to Establish Tech Centre in Nigeria
Government2 weeks ago
#Endsars: Naira Marley Calls Off Protest following Police Invitation
Cryptocurrency4 weeks ago
SEC Insists It Has What it Takes to Regulate Crypto Space