The House of Representatives Committee on Finance has amended some provisions of Tinubu’s tax bill to incorporate some concerns of stakeholders during its public hearing held in February.
According to BusinessDay, some of the amendments affected controversial areas, including the proposed increase in Value Added Tax, inheritance tax, taxation of free trade zones, and the proposed defending of TETFUND, NITDA and NASENI.
James Faleke, the chairman of the committee while presenting key amendments during consideration of the bill on Thursday, said the stakeholders recommended a reduction of the tax rate to 5% but the committee proposed to retain the current VAT of 7.5 which the House adopted.
The Committee deleted the clause on the proposed introduction of inheritance tax as well as the proposed defence of NASENI, TETFUND and NITDA.
On taxation of free trade zones, the committee recommended that operators of free trade zones must be limited to 75% for export and 25% outside the free zones before they would enjoy the tax benefits.
