- September 11, 2020
- Posted by: admin
- Category: Uncategorized
A finance expert, Mr. Kennedy Iwundu, has called for a review of the Finance Act 2019 to continuously improve on the ease of doing business in country.
In a paper presented at the Chartered Institute of Taxation of Nigeria (CITN), Mandatory Professional Training Programme (MPTP), Iwundu, who spoke on the Imperative of Finance Act 2019, on Doing Business in Nigeria also asked that entities exempted from paying Value Added Tax (VAT) should be exempted from VAT returns.
Iwundu said the Finance Ac t should be reviewed in such a manner that states will be allowed to collect VAT and pay the Federal government 15% and retain 85%. This, he said, would go a long way to promote the diversification of the economy of the various states.
Reviewing the Finance Act, he noted, would also cut down the list of taxes and levies for collection, thus helping to cut down the incidence of double or multiple taxation and promote business environment in the country.
Iwundu said FIRS should further give more explanatory circulars of Finance Act especially on its implementation, as tax consultants and tax payers are still confused on certain implementation of the Act.
He suggested that the Finance Act should review the stamp duty rates with a view to promoting the ease of doing business in Nigeria, noting that tax authorities and consultants have a huge responsibility in educating the tax payers on the nitty gritty of the Finance Act 2019.
He recommended a revisit of the 0.5 per cent minimum tax on turnover as it would work against companies that have cost of sales ranging from 80 to 99 percent of sales and that the Federal Inland Revenue Services (FIRS) should allow taxpayers to use such safe-charge VAT as an input VAT , thus helping to reduce the VAT burden on both payers and their customers; review Finance Act to specifically state the method of computing VAT penalties while also exempting stamp duties from rent agreement of residential properties just as VAT on same has been abolished by Executive Order.