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7.5% VAT Implementation Takes Effect February 1, 2020 – Finance Minister
By Tony Obiechina, Abuja
The implementation of the Value Added Tax (VAT) of 7.5 percent is to take effect from February 1,
2020, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed has announced.
The Accountant General of the Federation, Mr Ahmed Idris had on Wednesday told journalists that the implementation of the new VAT rate commenced on Monday when the president signed the Finance Bill into Law.
However speaking shortly before she inaugurated the new chairman and board members of the Federal Inland Revenue Service yesterday, the minister said the new rate will take effect
after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice.
“I want to announce that the effective date for the VAT increase from 5percent to 7.5% will be 1st of February, 2020
“Once a bill is signed into law, it takes effect immediately, but it is to note that there are certain
administrative procedures and formalities to be finalised before commencement. Recall the VAT increase which is meant to help government achieve its revenue projections for the 2020
Budget (N8.155trillion) is a part of the tax reforms included in the 2019 Finance Act. With the Act, there will be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure”.
According to the minister, the new date has put to rest the speculations about the effective take off date for the new VAT regime.
The minister while inaugurating the new board reminded the chairman his members that being members of a country tax administration comes with huge responsibility and they must work hard to show that their appointments were well deserved.
She challenged the new board to come up with ideas and strategies that will improve the country’s tax administration.
The new chairman of the FIRS board, Mr. Muhammed Nami in his inaugural speech assured the Finance Minister that he would bring his experience and expertise to bear in his new portfolio and called on other members of board to give him unalloyed loyalty and cooperation to give the desired result.
Nami announced a 13-point priority areas the new board will address in his first 100 days in office including: capacity building for the FIRS staff, building new enforcement strategies, restructuring and reposting audit functions, review of structures and corporate strategic retreats.
Others are overhauling critical I’m infrastructure, reposting of collections reports get and accounting and reposition of the large and medium tax payers offices am going others
Among the Finance Act strategic objectives is the supporting of micro, small and medium Enterprises (MSMEs) in line with the ease of doing business reforms such as VAT threshold”, the minister stated.
Mrs Ahmed, had earlier said that: “We planned that, going forward, the annual budget will always be accompanied by Finance Bills to enable the realisation of revenue projections.
“Future Finance Bills will therefore also provide us with additional opportunities to incrementally
improve the fiscal policy and regulatory/legal environment in order to further strengthen our domestic capital market, and ultimately ensure sustained and inclusive growth and development.”
The minister noted that the Finance Act also takes care of essential palliatives to support MSMEs and mitigate the impact of the VAT rate increase on the most vulnerable businesses, communities and citizens in the economy.
Some of these measures include: Expanding the list of VAT-exempt items (e.g. basic food items,
educational materials and medical supplies); Introducing a VAT registration threshold for MSMEs with a turnover of less than N25 million per annum; Reducing the corporate tax rate for MSMEs from 30 percent to 20 percent for Small firms (with turnover of between N25million and N100million per annum.); and exempting micro-firms (with turnover of less than N25million per annum).
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Airports: Tinubu Seeks N24.6bn to Reimburse Nasarawa, Kebbi
By Lubem Myaornyi, Abuja
President Bola Tinubu has written to the House of Representatives seeking the preparations and approval of a N24.6 billion Promissory Notes to reimburse Nasarawa and Kebbi States on the costs of their Airports taken over by the Federal Government.
Nasarawa is to be reimbursed N9.5 billion while Kebbi is to be reimbursed to the tune of N15.
1 billion.In the letter read by the Deputy Speaker, Benjamin Kalu, who presided over the Plenary on Thursday, the President said, the takeover of the airports was in line with Item 3 of the Second Schedule of the 1999 Constitution (as amended) which placed the ownership of Airports and other Aviation related infrastructure in the exclusive list.
Similarly, the President in a separate letter presented an Executive Bill, the National Anti-Doping Bill 2024 for the House consideration.
The President said the bill seeks the creation of an agency for Nigeria to achieve world standards and codes on Doping by signatories to the international regulations.
He urged the House to give the Bill a speedy consideration before the commencement of the Olympic Games coming up later in July.
In another letter, the President sought the approval of a supplementary budget for the Federal Capital Territory (FCT) for the 2023 fiscal year.
Tinubu Transmits Bill on Sports Performance Enhancement Drug to Senate
Meanwhile, President Bola Tinubu has forwarded a bill to the Senate seeking to prohibit Nigerian athletes from consuming substances that enhance performance during or after competitions.
The president’s request was contained in a letter read by the Deputy Senate President, Barau Jibrin, who presided over the plenary on Thursday.
The bill titled “National Anti-Doping Bill 2024”, if passed, will regulate substances that can be consumed by athletes during sporting events.
In the letter, Tinubu said the bill would provide a legal framework for the establishment of the National Anti-Doping Organisation to regulate sporting competitions.
He explained that the establishment of the agency was a requirement for Nigeria to achieve compliance with the World Anti-Doping Code.
The World Anti-Doping Code (Code) is the core document that harmonises anti-doping policies, rules and regulations within sports organisations and among public authorities around the world.
Tinubu noted that the law will help Nigeria avoid the imposition of signatory consequences and the inclusion of laws of hosting and participating rights at regional, continental and world championships or major athletic events.
“In accordance with the provisions of section 58 (2) of the Constitution of the Federal Republic of Nigeria, 1999, as amended, I forward herewith the National Anti-Doping Bill 2024 for the kind consideration of the Senate.
“The National Anti-Doping Bill 2024 seeks to create an administratively independent National Anti-Doping organisation, which is a cardinal requirement for Nigeria to achieve compliance with the World Anti-Doping Code and the international standard for code compliance by signatures.
The enactment of this vital legislation will also help Nigeria avoid the imposition of signatory consequences, the inclusion of laws of hosting and participating rights at regional, continental and world championships or major athletic events”, Mr Tinubu added.
The president, however, urged the lawmakers to consider the bill before the Olympic Games seminar scheduled to be held in Paris in July for Nigerians to be part of the competition.
“It is my hope that this submission will receive the humankind expeditious consideration of the distinguished members of the Senate of the Federal Nigeria for passage of the same to law before the Olympic Games seminar in Paris in July 2024.
“Please accept, distinguished president, the assurances of our highest consideration. Regards.”
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Medical Tourism: Senate Mulls Health Infrastructure Development Agency
The Senate at the plenary on Thursday passed through second reading, a Bill seeking for an Act to establish the Health Infrastructure Development Agency to provide a comprehensive framework to guide the planning, financing, construction, maintenance, and regulation of healthcare infrastructure in Nigeria.
The proposed legislation titled; “Bill for an Act to establish Health Infrastructure Development Agency,” was sponsored by the Minority Whip, Senator Osita Ngwu.
Leading the debate on its general principles, Ngwu who represents Enugu West senatorial district explained that the bill seeks to promote development and improvement of healthcare infrastructure so as to enhance healthcare access, quality, and delivery across the country.
He further explained that it seeks to strengthen the healthcare system by focusing on the modernization of healthcare facilities by leveraging public-private partnerships for sustainable infrastructure development.
The lawmaker lamented that the Nigerian healthcare industry faces challenges associated with outbound medical tourism, inadequate medical personnel and deteriorating medical infrastructure.
Making reference to a report by the International Trade Administration, which stated that Nigeria is still underdeveloped, lacks modern medical facilities and its healthcare indicators were some of the worst in Africa, Ngwu recalled that to reverse the trend, the government approved the second National Strategic Health Development Plan (2018-2020).
He pointed out that part of the objective of the plan was to improve availability and functionality of health infrastructure required to optimize service delivery at all levels, saying that it’s against this background that this Bill is proposed.
The lawmaker added that the Bill was a bold attempt at not only reversing the medical tourism of Nigerians to other countries, but also seeks to make Nigeria a medical destination hub within the shortest possible time.
“Healthcare infrastructure constitutes a major component of the structural quality of a health system. It is a key pillar that supports the aim of promoting improved standard of medical care and wellbeing. The Bill outlines the responsibilities and powers of a Board, emphasizes collaboration and coordination among stakeholders, and provides for the issuance of regulations and guidelines to support effective implementation of its objectives.
“The Bill proposes the establishment of an Agency to administer the framework for policy direction, standards, guidelines, efficient construction processes, and quality control measures. The Agency would also ensure that healthcare facilities are designed, constructed, and maintained to meet the highest standards and support the delivery of quality healthcare services.
“The Bill emphasizes the importance of rural healthcare access and outlines strategies for addressing healthcare disparities in rural areas. By implementing these strategies, Nigeria can enhance healthcare access and delivery in rural communities, improving health outcomes and reducing disparities. Provision is also made to accommodate the importance of public-private partnerships (PPPs) and the types of PPP models that can be employed. By implementing these guidelines, Nigeria can effectively leverage the expertise and resources of the private sector to improve healthcare access, affordability, and quality,” Ngwu said.
Thereafter the Bill was put to a voice vote by the President of the Senate; Godswill Akpabio who presided over the session and it was passed and referred to the Committee on Health Institutions.
Senate Passes North West Development Commission Establishment Bill
Similarly, the Senate on Thursday passed the North West Development Commission (NWDC) establishment bill, to address challenges facing the seven states in the zone.
This followed the adoption of the report of the Senate Committee on Special Duties, on the NWDC (Establishment) at Thursday’s plenary.
Presenting the report, the Chairman of the Committee, Sen. Shehu Kaka from Borno State said the purpose of the bill was well structured and strategically streamlined, for the socio-economic development of the North West zone of the country.
He added that the commission’s establishment would bring the federal government closer to the north western states, and meet the yearnings and aspirations of the people.
Kaka, therefore, urged the Senate to pass the bill.
The lawmakers unanimously passed the bill when it was put to a voice vote by the deputy senate president, Barau Jibrin who presided over the plenary.
In his remarks, Barau commended his colleagues for supporting the bill’s passage.
He said the commission would address the challenges, facing the zone and, by extension, the country.
Describing the North West as the food basket of the country, he said the commission would also work toward the restoration of infrastructure, destroyed by Boko Haram insurgents and bandits in the zone.
“So if we are serious about ensuring we have food, and for food security to be attained in this country, we must provide the necessary infrastructure for all our key sectors to thrive well.
“This commission is needed. I commend you all for supporting this; no one said no. Everybody supported this idea. So, now we are pushing the Bill to the House of Representatives for their approval and then, to Mr President for assent,” he said.
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Herdsmen Kill Pregnant Woman, 10 Others in Benue
From Attah Ede, Makurdi
Suspected armed herdsmen again reportedly killed a pregnant woman, 10 other persons during attack on Akilo community in Usha council ward in Agatu West of Agatu Local Government Area (LGA) of Benue State.
It was gathered that the victims were killed in their homes by the marauders who invaded the community at about 3:30pm on Sunday.
The caretaker chairman of Agatu LGA, Mr.
Yakubu Ochepo, who confirmed the killings, said that “11 people were killed. ”Ochepo said of the number of deaths recorded, seven corpses have been recovered.
According to him, A pregnant woman corpse, an elderly man and that of five youths have been recovered, adding that the community members were able to achieve this through the aid of soldiers and Air force personnel deployed to the area.
“Soldiers and Air Force went there yesterday (Sunday), to recover the corpses. There were gunshots and they were running away only to regroup again.
“I’m in Makurdi now to report to Operations Whirl Stroke. We need more hands. We hear they captured some alive and threw some into the river but we are still waiting for more reports from the area.
“We have not been able to recover the remaining four corpses yet,” he explained.
Ochepo appealed to both the state and Federal Governments to take drastic action towards ending the carnage by deploying more security personnel to Agatu to check the activities of the killer herdsmen in the LGA.
When contacted, the Benue State Command Police Public Relations Officer, Catherine Anene said she was yet to get information about the fresh attack in Agatu.
It would be recalled that three farmers were reportedly killed by gunmen suspected to be herdsmen at Ogbaulu community in Agatu LGA.
The victims were working on their farms when the herders came to slaughter them.
Similarly, on April 9, 15 persons were killed after suspected herders attacked same Ogbaulu community.
It was gathered that the attackers conducted relentless attacks on the area for two weeks, invading all the villages the area.
The Chairman of Agatu listed some of the communities currently under siege by armed herders in Agatu LGA as: Olegomakwu, Onahe, Ocholonya, Okokolo, Ugboju, Olegobidu, Odugbeho, Odejo, Ogbaulu, Imwenyi, Adana, Ologba-Gishu, Iwarri, Ejima-gope, Ejima-gochi, Ikpele and Okpokpolo.