OrderPaperToday-Players in the agricultural sector may soon begin to enjoy tax holidays as the House of Representatives has joined its Senate counterparts to pass the Finance Bill which seeks 10 year tax break for them.
The Bill comprises of the Companies Income Tax Act, Value Added Tax Act, Customs and Excise Duties Tax, Personal Income Tax Act, Capital Gain Act, Stamp Duties Act and Petroleum Profit Tax Act.
The 55 clause Bill was considered by Committee of the Whole of the House and passed.
The report was presented by the chairman of the Finance Committee, James Faleke (APC, Lagos).
President Muhammadu Buhari had, on the 8th of October, while presenting the 2020 budget, disclosed that the Finance Bill will be presented to the National Assembly for amendment.
Notable provisions in the bill include the controversial increment of the Value Added Tax from 5% to 7.5%.
Speaking on the bill, Faleke said that stamp duties will only be charged on transactions above N10,000.
He also added that the amendment, when signed into law, would put an end to the fight between Federal Inland Revenue Services (FIRS) and Nigeria Postal Services on the collection of stamp duties as only FIRS has the mandate to collect stamp duties since it is a tax.
While the agricultural sector will also get tax holiday of 10 years, the concession is, however, for farmers who are also into processing.
It also provides that dividends will not be taxed if tax had been collected at the origin, to avoid double taxation.