7 January 2014

Nigeria: New Tax National Regime Coming

A new tax regime, other than personal income tax, may emerge in the country before the end of the first quarter of the year, the News Agency of Nigeria (NAN) reports. NAN quoted an anonymous source at the Federal Inland Revenue Service (FIRS), who gave the hint that a meeting on the tax issue would hold before the middle of January.

The source said that the meeting would set out the target to be met by the agency in line with the federal government's tax projection for the year. "Normally, the federal government will give FIRS an annual revenue target in tax collection and the management will meet to discuss its action plan and set its own target and as it is now, there may be a review of current taxes," he said.

In the 2014 Appropriation Bill, the Federal Government projected a tax revenue of N1.83 trillion. In the projection, the government is targeting N986.3 billion from corporate income tax and N845.4 billion from Value Added Tax.

A breakdown of the corporate tax projection for the year showed that the sum of N967.58 billion is expected from Companies Income Tax, N8.5 billion from Stamp Duties and N10.2 billion from Capital Gains Tax.

The source stressed that the taxes "are very likely to be reviewed if FIRS will meet and may be, surpass the revenue projection from tax this year", adding that the decision would be taken at the meeting. (NAN)

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