Taiwo Oyedele affirmed that the new tax bills in Nigeria will not include inheritance tax, clarifying that the laws pertain solely to family income taxation. He addressed misplaced concerns regarding investor withdrawals from free zones and highlighted sustainable money circulation in the economy. Additionally, critiques from industry leaders were noted, focusing on regulations affecting manufacturers and free zone policies.
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, clarified that the proposed tax bills currently under consideration by the National Assembly will not include the reintroduction of inheritance tax. Speaking at a public hearing organized by the House of Representatives Committee on Finance, he explained that a section interpreted as introducing inheritance tax relates specifically to family income rather than asset inheritance.
Oyedele emphasized that, under the proposed legislation, families earning income from property rentals would be subject to taxation. He outlined that if property is owned collectively by a family, taxes on rental income would apply, much like any other income by individuals. This provision has existed in Nigerian tax laws since independence and is reflective of existing stipulations in the Personal Income Tax Act.
He further debunked the notion that this provision constitutes an inheritance tax, asserting that there have been no attempts since the repeal of the actual inheritance tax in 1996 to reintroduce such a levy. Furthermore, he assured stakeholders that these tax reforms fall under the jurisdiction of state governments, not the federal government.
Addressing concerns regarding investor withdrawals from free zones, Oyedele dismissed claims that 70% of investors had divested their funds. He highlighted that Nigeria’s total money supply remains robust, with substantial digital transaction volumes reported, indicating that capital is not fleeing the country as alleged.
Zach Adedeji, Chairman of the Federal Inland Revenue Service (FIRS), condemned practices by some investors in free zones who attempt to sell products in customs areas while enjoying tax advantages. He asserted that such actions disrupt economic equilibrium and emphasized the importance of law adherence.
Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), acknowledged the government’s initiative in introducing the tax bills while expressing reservations about the absence of export incentives for manufacturers. He advised against allowing unrestricted sales to Export Free Zones, proposing a cap of 25% on local market sales, and commended the plan to reduce corporate income tax as a means to stimulate economic growth.
In summary, the proposed tax reforms in Nigeria will not reintroduce inheritance tax, as clarified by Taiwo Oyedele. The taxation of family income on property rentals will continue as part of existing laws, and concerns regarding investor withdrawal have been addressed. The enactment of these reforms aims to strengthen the fiscal policy framework, while also balancing the interests of various stakeholders in the economy.
Original Source: www.zawya.com
