FG to Stop Tax Exemption on Oil Companies’ Dividends – TheNigerialawyer

The federal government is seeking to stop tax exemption on
dividends paid from the profit of oil companies operating in the
country when the Finance Bill currently before the National
Assembly is finally passed into law.

The bill was submitted by President Muhammadu Buhari alongside
the 2020 Appropriation Bill on October 8, 2019.

The Minister of Finance, Budget and National Planning, Mrs
Zainab Ahmed, revealed in a statement issued on Tuesday that the
stoppage of tax exemption on dividends paid by oil companies is one
of the features of the Finance Bill, which has passed the second
reading in the Senate.

The objectives of the bill, as outlined by the President, are to
strategically promote fiscal equity by mitigating instances of
regressive taxation; reform domestic tax laws to align with global
best practices.

Ahmed, in the statement issued by her Special Adviser, Media and
Communication, Yinusa Tanko Abdullahi, applauded the attention,
speed and commitment with which the parliament has attended to the
bill .

The minister said the bill seeks to provide efficiency in the
administration of individual income taxes in Nigeria.
On Capital Gains Tax, she said the amendment would cover the
taxation of business combination and seeks to prevent abuse of a
provision of the Act on group restructuring.

Commenting on Stamp Duties, the minister said the new bill seeks
to increase revenue generation from duties on electronic
stamps.
On amendment to Petroleum Tax, she said, “This Bill seeks to
improve revenue by removing the tax exemption granted for dividends
or income received from companies charged under Petroleum Profits
Tax Act.

“The Bill contains some changes to the Companies Income Tax Act,
Value Added Tax Act, Petroleum Profits Tax Act, Personal Income Tax
Act, Capital Gains Tax Act, Customs and Excise Tariff Act and Stamp
Duties Act.

“The Bill also seeks to address the taxation of industries, such
as insurance, start-ups, and the capital markets, evaluated by the
federal government as critical to the growth and development of the
Nigerian economy with a view to stimulating activities in those
sectors and fostering overall economic growth,” the statement
added