Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, confirmed that inheritance tax will not be reintroduced in Nigeria’s tax bills. He clarified that current provisions concerning family income are not new and have been part of Nigerian tax laws for decades. Oyedele also addressed investment concerns in free zones and emphasized fair tax practices among businesses. The FIRS Chairman criticized improper sales practices within these zones, while industry leaders called for incentives and regulatory caps to protect local markets.
Taiwo Oyedele, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has assured Nigerians that the proposed tax bills will not reintroduce inheritance tax. During a public hearing organized by the House of Representatives Committee on Finance, Oyedele clarified that what was misconstrued as inheritance tax is essentially a provision concerning family income tax, which has existed since Nigeria’s independence.
Oyedele explained that taxes apply to rental income from properties owned by individuals or families. He emphasized that income is distinct from inheritance, as inheritance pertains to transferred wealth and assets. Current tax laws already mandate that family income can be allocated to individual members for tax purposes.
Moreover, Oyedele referenced existing provisions related to community-owned properties liable for taxation, asserting that the proposed tax does not represent a new inheritance tax. He pointed out that actual inheritance tax was previously institutionalized in 1979 but repealed in 1996 and stated that there has been no intention to reinstate such a tax since.
In responding to claims made by some stakeholders regarding investment withdrawals from free zones due to unfavorable policies, Oyedele dismissed these allegations as misleading. He provided data on Nigeria’s cash circulation and emphasized the continued intact nature of the overall money supply amidst ongoing digital transactions in the financial system.
Zach Adedeji, the Chairman of the Federal Inland Revenue Service (FIRS), criticized certain investors in free zones for attempting to sell products in customs areas. He affirmed that no government could condone such discrepancies, as the laws do not permit free zone entities to compete unfairly with tax-paying businesses.
Francis Meshioye, President of the Manufacturers Association of Nigeria (MAN), commended the government’s initiatives through the new bills but raised concerns regarding the absence of incentives for exporters and unrestricted sales in the Export Free Zones. He suggested limiting local market sales from free zones to safeguard local businesses while praising plans to reduce corporate income taxes as beneficial for economic growth.
The discussions surrounding Nigeria’s tax reform bills indicate a clear stance against the reintroduction of inheritance tax, with existing laws being reaffirmed. Officials emphasize fair taxation on family incomes and assert the government’s commitment to adapting policies that encourage investment while maintaining market integrity. Stakeholders advocate for balanced regulations in free zones and corporate tax reductions to enhance trade and production, reflecting a complex landscape of taxation and economic policies.
Original Source: www.zawya.com
