But it also came with a big cut on government’s tax revenue. The Finance Act is expected to slash 60 per cent tax revenue to government as companies with less than N25 million annual turnover are not required to pay Companies Income Tax based on the new law.
Nami assured that with 27 years practice in the tax industry, the sector is not a new terrain for him. “I am not in a new terrain. Before I was appointed the Executive Chairman of the FIRS, I had practiced tax for 26 years. So, in the tax terrain, this should be my 27th year. This fact confirms what I have been engaged in since 1991 when I graduated from the University. I started tax practice in 1993, some few months after I completed my National Youth Service.
Nami said the most recent amendment recognised technology, e-commerce and cross border transactions in line with global best practices and current economic realities. Stamp Duty is a tax payable in respect of dutiable instrument as provided under the Stamp Duties Act, CAP S8, LFN 2004 . Nami explained that government possibly foresaw the pandemic and quickly passed the Act to give the palliatives contained in the Act. “Now that our target on Stamp Duties is about 3000 per cent more than the previous years, we have to inform Taxpayers that Stamp Duties is not only payable at the point of incorporating companies but also on other items that are chargeable. Chargeable items are more than a hundred. This is what we have done.
For emphasis, the tenant does not payment to the individual Landlord, he must insist on going to a bank nearby to remit the Stamp Duty element of the rent. It is equally the responsibility of the Landlord to ensure that the Stamp Duty element of the rent is paid to the bank before he issues receipt or a copy of the agreement to the Tenant. The evidence of payment of the Stamp Duty should be made available to him.
“Let me clarify this to Nigerians, at the FAAC meeting of June, 2020, N696 billion was shared among the three tiers of Government. Each of us comes from one Local Government or the other. Each Local Government takes its share to go and pay their Workers. It is from this money that States decides to build roads, schools and pay salaries.