FEC Approves Bill to Amendment Company Income Tax

Federal executive committee (FEC) has approved the economic stabilisation bill seeking amendment of tax policies, according to Wale Edun, minister of finance and coordinating minister of the economy.

Edun, who spoke on Monday while briefing state house correspondents after the council’s meeting, which was presided over by President Bola Tinubu, said the council passed the economic stabilisation bill which is largely based on the recommendations of the fiscal policy and tax reform committee.

The minister said the bill is aimed at implementing the committee’s recommendations which include amendments to the company income tax (CIT).

Edun was however silent on the expected amendments, on June 4, Taiwo Oyedele, chairman of the fiscal policy and tax reform committee, said the committee proposed the reduction of the company income tax by 5 percent.

Oyedele said the tax rate should drop from 30 percent to 25 percent, as it would go a long way to encourage businesses and investors.

“We are proposing that the company’s income tax rate be reduced by about 5% over the next two years. Nigeria’s CIT is one of the highest in the world. We are in the top 10,” the chairman said.

He said the committee also seeks to reduce the number of taxes in the country to a single-digit tax system through its proposed reforms.

Oyedele said the taxes would be shrunk to just seven, namely: income tax, value-added tax (VAT), property tax, customs duties, excise duty, stamp duties, and special levy.