Economy
Stakeholders to Discuss Stronger Tax Regimes in Abuja
By Modupe Gbadeyanka
Vice President of Nigeria, Prof. Yemi Osinbajo, has been scheduled to declare open the 3rd International Conference on Tax in Africa (ICTA) taking place in Abuja from September 25 to 29, 2017.
During the flagship conference of the African Tax Administration Forum, stakeholders will discuss stronger tax regimes under the theme ‘Building Strong Domestic Tax Regimes in Africa: Strengthening VAT, PIT and CIT.’
The conference program is designed along expert panel discussion sessions and presentations. The ICTA 2017 will look at the technical challenges, successes and good practice in the administration of VAT in Africa; enhancing performance of PIT through broadening the tax base, sanitising the taxpayer register and improved taxpayer experience with regard to managing compliance; and dealing with complexities of CIT taking into account the filing of corporate tax returns, enhanced customer service delivery, corporate structures vis-à-vis tax planning, tax audits and investigation.
This year’s ICTA is expecting delegates and panellists well beyond its 38-member countries including from other revenue authorities and organisations such as the African Development Bank, the World Bank, OECD, International Tax Compact, GIZ, Tax Justice Network – Africa, ECOWAS and CREDAF.
The programme will also celebrate and recognise the six African experts selected to serve on the UN Committee of Experts on International Cooperation in Tax Matters.
Five of the six members come from ATAF member countries and two of these are on the ATAF council. These include Mr William Tunde Fowler (Nigeria), the Chairperson of ATAF’s Council and Mrs Elfrieda Stewart Tamba (Liberia).
A statement issued by ICTA said to end poverty and hunger by 2030, the UN’s 17 Sustainable Development Goals (SDGs) are premised on strategies that build economic growth to address a range of social needs including education, health, social protection, and job opportunities, while tackling climate change and environmental protection. Tax revenue, is therefore viewed as the main enabler for achieving these goals.
The African Union, for its part, has set Agenda 2063 to build “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in international arena.”
To fulfil this vision, Agenda 2063 talks of the need for inclusive growth and sustainable development as well as good governance, democracy, respect for human rights, justice and the rule of law. To bring this agenda into fruition, domestic resource mobilisation takes a central role, as donor fatigue is now only too evident.
African countries are signatories to both these ambitious milestones. For ATAF, continent meeting both these agendas will, largely hinge on effective domestic resource mobilisation (DRM) or strengthening domestic tax regimes in every African country. In light of this, both the Forum’s Council as well as its General Assembly have given the directive for a strong focus on domestic taxes, hence the theme for ICTA 2017.
The Conference is focusing on specific domestic taxes including VAT, Personal Income Tax (PIT) and Corporate Income Tax (CIT) due to their potential contribution and the underlying risks that are likely to undermine the revenue take.
Value Added Tax (VAT) is administered in 44 of the 54 African countries and is seen as the tax of the future as it has a broad base and therefore, needs review of processes for effectiveness and efficiency in its administrations.
Corporate Income Tax (CIT) is in the spotlight as more manufacturing industries take root in the continent. Similarly, there is a growing service sector constituting the financial, telecommunication and real estate.
Personal Income Tax derived from individuals such as employee PAYE, other withholding tax schemes and High Net Worth Individuals (HNWI) are also key contributors to domestic revenue.
These tax heads have a quicker turn-around time if well administered in terms of taxpayer registration, return filing and payment, audits, collections, refunds and dispute resolution and can readily contribute to financing recurrent budgets of the African continent.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited came under heavy selling pressure on Tuesday, going down by 1.66 per cent as investors embarked on profit-taking after most stocks on the trading platform gained in the past few trading sessions.
It was observed that the industrial goods sector was the most affected yesterday as it went down by 4.99 per cent due to the decline suffered by Dangote Cement and others.
The insurance continued its downward trend during the day as it lost 2.80 per cent, the consumer goods counter fell by 0.27 per cent, and the banking index shed 0.10 per cent, while the energy sector appreciated by 0.29 per cent.
At the close of business, the All-Share Index (ASI) deflated by 1,745.16 points to settle at 103,622.09 points compared with the previous trading day’s 105,367.25 points and the market capitalisation moderated by N1.1 trillion to finish at N63.188 trillion versus Monday’s N64.252 trillion.
Business Post reports that investor sentiment remained weak on Tuesday after the bourse ended with 41 depreciating equities and 23 appreciating equities, representing a negative market breadth index.
Honeywell Flour lost 10.00 per cent to trade at N9.54, Dangote Cement declined by 9.98 per cent to N431.00, Julius Berger crashed by 9.98 per cent to N139.80, Sovereign Trust Insurance decreased by 9.68 per cent to N1.12, and Prestige Assurance tumbled by 9.30 per cent to N1.17.
On the flip side, Northern Nigerian Flour Mills appreciated by 10.00 per cent to N45.10, Livestock Feeds grew by 9.91 per cent to N6.10, Academy Press expanded by 9.90 per cent to N3.22, University Press increased by 9.82 per cent to N4.81, and Neimeth gained 9.76 per cent to quote at N3.15.
During the session, market participants bought and sold 503.3 million shares valued at N12.6 billion in 12,900 deals compared with the 505.8 million shares worth N8.1 billion traded in 14,259 deals a day earlier, indicating a rise in the trading value by 55.56 per cent and a drop in the trading volume and number of deals by 0.49 per cent and 9.53 per cent, respectively.
The most active stock for the session was GTCO with 54.4 million units worth N3.2 billion, Nigerian Breweries transacted 32.2 million units for N1.0 billion, Universal Insurance traded 30.8 million units valued at N22.6 million, AIICO Insurance exchanged 26.6 million units worth N47.2 million, and Chams transacted 20.0 million units valued at N40.9 million.
By Adedapo Adesanya
The federal government is offering two new savings bonds with interest rates between 17 and 18 per cent through the Debt Management Office (DMO).
In a statement by the agency, the country said retail investors can purchase the two-year bond maturing in January 2027 at 17.23 per cent interest, while the three-year paper maturing in January 2028 at a coupon rate of 18.23 per cent.
Bonds are very safe financial instrument that serve as investments because they are backed by the federal government, which promises to pay back the money.
According to the DMO, people can buy these bonds starting January 13, 2025, until January 17, 2025, with allotment expected on January 22, 2025, and the interest to be paid to investors every three months – in April, July, October, and January.
These bonds have some special features. They are tax-free under both company and personal tax laws.
Big investors like pension funds and trustees are allowed to buy them and each bond costs N1,000 each.
However, interested investor can only buy at least N5,000 worth, and can’t buy more than N50 million.
This comes after the Ms Patience Oniha-led debt office said the Nigerian government was offering three bonds worth N150 billion in September 2024.
By Aduragbemi Omiyale
The House of Representatives has said it would make efforts to pass the controversial tax reform bills forwarded to the National Assembly by President Bola Tinubu last year.
Mr Tinubu, in a bid to improve revenue of the government, asked the parliament to pass the bills, but this has been resisted mostly by northern lawmakers and others.
At the resumption of plenary session on Tuesday in Abuja, the Speaker of the House of Representatives, Mr Abbas Tajudeen, assured that the green chamber of the legislative arm of government would prioritise the tax reform bills.
“The legislative agenda of the House for 2025 prioritises the passage of the Appropriation Bill and the Tax Reform Bills, both of which are pivotal to economic recovery and fiscal stability.
“These reforms are essential for broadening the tax base, improving compliance and reducing dependency on external borrowing.
“The House will ensure that these reforms are equitable and considerate of the needs of all Nigerians, particularly the most vulnerable,” Mr Abbas said through the Deputy Speaker, Mr Ben Kalu, who presided over the session.
He also expressed grief over the loss of lives in stampedes in Ibadan, Abuja and Anambra State last month due to hardship in the country.
Several Nigerians died in the stampedes while trying to receive palliatives given to alleviate their sufferings.
“Tragic events, such as the stampedes in Ibadan, Abuja and Okija, during the distribution of palliative aid, underline the urgent need for improved planning and safety protocols in humanitarian efforts. On behalf of the House, I extend our deepest sympathies to the families and communities affected.
“These incidents serve as a stark reminder of the socio-economic hardships facing our citizens and the imperative for policies that tackle hunger and poverty at their roots.
“Turning to the economy, 2024 presented both difficulties and opportunities. While inflation remains a pressing concern, progress in GDP growth and the positive trajectory of economic reforms provide hope for a more stable and prosperous 2025,” the Speaker said.
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