As Nigeria ‘s lower Legislative Chamber continues public inputs on the four controversial tax reform bills, Chairman, Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has denied the reintroduction of Inheritance Tax, in the new tax bills under consideration.
Making his submissions at the public hearing organised by the James Faleke led House Committee on Finance in Abuja, Oyedele stressed the need to correct the impression.
The presidential Tax Reform Commitee Chairman noted that the section of the law that is being interpreted as introduction of inheritance tax is section 4 subsection 3, of the Nigerian tax bill,
which talks about family income.
Oyedele maintained that individuals that own property and rent them out pay tax on the rent and asked why a family that owns a property and rents it out should be excempted from paying tax on rent.
He argued that if such a law is allowed, all the houses in Nigeria will turn to family houses, and nobody will pay the tax.
The Nigeria Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA) also cautioned against the potential loss of over $200 billion in foreign direct investments and the risk of more than 600,000 job cuts if the proposed tax reforms targeting Free Trade Zones are implemented.
The Manufacturers Association of Nigeria, Arewa Consultative Forum, and the Oil Producing Trade Sector (OPTS), were among groups that also made submissions.
The contentious provisions in the Nigeria Tax Bill propose the introduction of minimum tax rates and the removal of longstanding tax exemptions for businesses operating within Free Trade Zones.
Industry stakeholders however argue that this contradicts Nigeria’s industrialization and investment goals.
