The federal government is set to introduce Tax Identification Consolidation and Collaboration (TICC), in the proposed Economic Stabilisation Bills (ESB), set for submission to the National Assembly.
The introduction of the TICC initiative is part of the government plan to expand the tax base, widen the tax net, and create a level playing field for businesses.
The initiatives are part of the 15 bills set for amendment as approves by the Federal Executive Council FEC, on Monday
The amendments will also allow for collaboration between the federal government and states to suspend certain taxes on small businesses and vulnerable population such as road haulage levies and other charges on transportation of goods; business premises registration; animal trade and produce sales tax; bicycle, truck, canoe, wheelbarrow, and cart fees; shops, kiosks and market taxes and levies.
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This is as the federal government has also proposed to include provision of additional funding for the Students Loan Scheme.
Taiwo Oyedele, chairman of the Presidential Fiscal Policy and Tax Reforms Committee, stated this in his X handle, while in a detailed statement on the content of the new bill.
The ESB which have been approved by the Federal Executive Council contain some recommendations of the Presidential Fiscal Policy and Tax Reforms Committee as part of the Accelerated Stability and Advancement Plan (ASAP) of the government.
“The ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth,” Oyedele said.
Other objectives contained in the proposed bills, include changes designed to achieve inflation reduction and price stability.
The initiatives are also meant to complement monetary policy measures with appropriate fiscal interventions to strengthen the naira and sustain exchange rates convergence.
The proposed bills are also expected to promote fiscal discipline and consolidation, enhance job creation and poverty alleviation, as well as serve as catalyst for export promotion and diversification.
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The key changes to be made to the various laws include, amendments to the income tax laws to facilitate employment opportunities for Nigerians in Nigeria within the global value chain, including the digital economy.
“Zero rated VAT and improved incentive regime to promote exports in goods, services, and intellectual property.
The amendment will also help to facilitate increase in investment in the gas sector and simplify the local content requirements to ensure competitiveness.
“Reform of the foreign exchange regime to enhance the regulatory powers of the CBN, unlock more forex liquidity, strengthen the naira, and sustain rates convergence.
The bill also seek to provide tax reliefs for private sector employers in respect of wage awards and transport subsidies provided to their employees.
Others include ” tax relief to companies that generate incremental employment and retain such employees for a minimum of 3 years.
The amendment will also enhance Fiscal discipline and remittances from government agencies and corporations to the Consolidated Revenue Fund of the federal government.
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