Nigeria’s business environment friendlier by tax reduction—Osinbajo



Vice President Yemi Osinbajo says the Federal Government is making Nigeria’s business environment friendlier by slashing taxes.

The vice president also said that the Federal Government, like it did in 2019, was  offering a range of tax incentives through the 2020 Finance Bill  so as to attract more incentives and make doing business in Nigeria more competitive.

Osinbajo’s spokesman, Laolu Akande, in a statement on Friday, said the vice president spoke at the third edition of the Nigeria Diaspora Investment Summit which was held virtually.

The summit featured several Nigerians and prospective investors from the Diaspora.

“What we have done in furthering our own economic policy is to attempt to make the fiscal environment as attractive as possible.

`What we have done is to use the instrumentality of the Finance Acts to make or propose significant reforms.’’

He said that the Finance Bill looked at several fiscal issues that needed legislation or amendments which would make it easier for government to implement the budget and ease the fiscal environment or make the fiscal environment friendlier.

The vice president said that the Federal Government started by passing the Finance Act in 2019 and had proposed second Finance Act in 2020.

“Last year, we passed a legislation giving small companies with a turnover of less than N25 million a year, tax exemption from the Companies Income Tax.

“Medium-sized companies with their turnover of between N25 million and N100 million now pays Companies Income Tax at the lower rate of 20 per cent.

“And then, services provided by Micro Finance Banks are completely exempted from VAT. So, no microfinance bank pays VAT now for its services.

“Withholding tax rates, also on roads, on bridges, on buildings, power plant construction contracts have been reduced from five per cent to 2.5 per cent.

“Those who are doing construction contracts and proposing for construction contracts, pay a reduced rate, they no longer pay five per cent; they now pay 2.5 per cent.

“Now in the proposed 2020 finance bill, we have gone a bit further; we are reducing by 50 per cent;  the minimum tax rate.

“So the minimum tax rate used to be 0.5 per cent; now is reduced to 0.25 per cent for gross turnover for the financial years ending between Jan. 1, 2020 and Dec. 31, 2021.

“So we have reduced the minimum tax rate by 50 per cent, by half.”

Osinbajo acknowledged the efforts of Abike Dabiri-Erewa, the Chief Executive Officer of the Nigerians in Diaspora Commission (NIDCOM) in harnessing the resources and talents of Nigerians abroad.

“The diaspora initiatives that we have and all of your efforts are certainly appreciated and will result to a stronger economy for Nigeria and a better country,” he said.

The investment summit is an annual feature of the Nigerians in Diaspora Commission (NIDCOM).

Edited By: Donald Ugwu

Chijioke Okoronkwo

Chijioke Okoronkwo: is a graduate and a professionally trained journalist, with experience in national news reporting/editing and verification at the News Agency of Nigeria. NNN is a media subscriber of the News Agency of Nigeria. NNN is a Nigerian online news portal that publishes breaking news in Nigeria, and across the world. Our journalists are honest, fair, accurate, thorough and courageous in gathering, reporting and interpreting news in the best interest of the public, because truth is the cornerstone of journalism and they strive diligently to ascertain the truth in every news report. Contact: editor[at] Disclaimer.

At least 7 dead as dinghy carrying migrants capsizes off Canary islands Malaysia reports 970 new COVID-19 cases, 4 more deaths Bangladesh reports 2,156 new COVID-19 cases, 39 more deaths Car hits gate of German Chancellery Iran condemns deadly explosions in Afghanistan’s Bamiyan COVID-19 cases rise to 1,060,152 in Mexico Syrian women receive income through food preparation under funding project UN office in Kuwait launches 16 days of activism against gender-based violence S. African president condemns violence in freight industry Georgia reports 3,071 more COVID-19 cases Los Angeles announces new measures to contain COVID-19 resurge Landslide kills 3, leaves 5 missing in western Uganda Kenya, European Council leaders resolve to pursue end to Ethiopian military offensive Ethiopian rights body says nearly 600 killed in Tigray massacre Kenya calls for revised commercial relations with EU United States food insecurity shadows a hungry Thanksgiving: analysts Ethiopia: UN ‘deeply worried’ over impending military offensive Brazil’s COVID-19 death toll tops 170,000 Colombia reports 7,515 more COVID-19 cases UN gets OK to inspect, repair derelict tanker with over 1 mln barrels of oil off Yemen coast Israel missile attack hits Syrian military targets COVID-19: FCT leads as NCDC reports 168 new infections We’ll correct errors despite victory at Flying Officers Cup — Coach British Govt. eases Coronavirus restriction for Christmas White House approves intelligence briefing for Biden NAFEST 2020: Participants hope it’ll help promote unity after #EndSARS Biden presents his national security team Nestlé begins Community Scholarship Scheme to promote youth education Buhari condoles with Minister of Communication over daughter’s death UNICEF congratulates Jaba for emerging as first ODF LGA in Kaduna Dow closes above 30,000 for first time amid strong market momentum LatAm business climate improves in Q4, says Brazilian think tank Gov. Tambuwal says Sokoto requires N1.9 bn for rural electrification Shippers Council mourns immediate past Executive Secretary, Biu Group lauds Makinde’s giant strides on LAUTECH, education development KEDCO: Bagudu flags-off National Mass Metering Programme in Kebbi State Take handcraft seriously, desist from crime, frivolous activities – NCAC advises youths Security: Stakeholders call for more attention to youths Grammy Awards: Burna becomes first Nigerian with consecutive nominations Kwara Assembly passes Residents Registration Agency Bill S/South leaders engage FG delegation, demand restructuring Electoral Act Amendment Bill passes 2nd reading in the House of Reps Sasa market inferno: Makinde pledges N10m to rebuild affected shops AID 2020: AU, UNIDO, others urge African governments to harness AfCFTA’s economic opportunities Minister orders overhaul of Super Eagles France unveils gradual easing of nationwide coronavirus lockdown Congolese govt., Chinese firm sign deal to build oil refinery in Pointe-Noire COVID-19:Ondo establishes 20-bed isolation centre Afreximbank commits $350m to FEDA, signs agreement with Rwanda Functional local government system key to addressing nation’s security challenge — Adedeji