FEC APPROVES TAX AMENDMENT BILLS AND EXECUTIVE ORDERS
After the Federal Executive Council (FEC) meeting on 6 June 2018, the Minister of Finance, Mrs. Kemi Adeosun, announced the approval of two Executives Orders and five Tax Policy Amendment Bills, aimed at reducing the tax burden on Nigerians and improving the ease of doing business.
The Executive Orders approved are:
- Value Added Tax Act (Modification) Order; and
- Review of Goods Liable to Excise Duties and Applicable Rate Order.
While the Amendment Bills include:
- Company Income Tax Act (Amendment) Bill;
- Value Added Tax Act (Amendment) Bill;
- Personal Income Tax Act (Amendment) Bill;
- Industrial Development (Income Tax Relief) Act (Amendment) Bill; and
- Customs, Excise, Tariff ETC (Consolidation) Act (Amendment) Bill.
The ‘Value Added Tax Act (Modification) Order’ gives a legal backing to Value Added Tax (VAT) exemption on residential property leases or rentals and life insurance premiums (which have hitherto been only exempt in practice and by Circulars issued by the Federal Inland Revenue Service -FIRS) and also provides for VAT exemption on transport services for use by the general public.
The ‘Review of Goods Liable to Excise Duties and Applicable Rate Order’ provides legislative backing to the approved changes to the rates and bases for levying excise duties on alcoholic beverages and tobacco, amongst others. The changes were earlier communicated via a Circular, issued by the Minister of Finance, and which became effective on 4 June 2018.
The contents of the Amendment Bills and the comprehensive contents of the Executive Orders, including effective dates as shown in the Orders, would be analysed and communicated by us once we receive the copies of the documents. Please note that the provisions of the Amendment Bills will only become effective after passage by the National Assembly, and enactment into Law.
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