Finance Minister to Nigerians; “Expect New Taxes in 2022”.
The Minister of Finance, budget and national planning, Mrs Zainab Ahmed, has said there might be introduction of new tariffs and levies in 2022, as the economy was now on a recovery path.
Addressing stakeholders at a public hearing on the 2021 finance bill on Monday, December 13, in Abuja, Ahmed said that a couple of reforms and amendments had been recommended in the draft 2021 Finance amendment bill, and more will be introduced in the middle of 2022.
The minister said that modest changes had been proposed, but that more fiscal reforms were still in view as the ministry could not take all the proposals collected from stakeholders.
According to her, “While these issues may require most increases in taxes and tariffs on certain businesses, industries, and individuals over the medium term, our aspiration is to do a midterm review with a possibility of another Finance Bill in mid-year 2022 to bring in more amendments.”
Ahmed explained that the ongoing legal cases in court against the federal government on VAT and stamp duties had prompted the finance ministry to steer clear of those areas. She, however, expressed hope that by mid-2022, the cases might have been dispensed with, and then reforms in those areas could be proposed for parliament to consider.
“We prepared this draft bill along five reform areas, the first domestic revenue mobilisation, the second is tax administration and legislative drafting, third is International taxation, fourth is financial sector reforms and tax equity and fifth is improving public financial management reform.
The provision in the draft bill is proposing to amend the Capital Gains Tax Act, Company Income Tax, FIRS Establishment Act, Personal Income Tax, Stamp Duties Act and Tertiary Education Act, Value Added Tax, Insurance Police Trust Fund, and the Fiscal Responsibility Act.
This is to amend the Police Trust Fund Act and the Nigerian Trust Fund Acts, the purpose is to empower the FIRS to collect the Nigerian trust fund levies on companies on behalf of the fund itself,” she said.