The much-debated and anticipated new tax regime expected to fund the 2020 budget and restructure tax administration in Nigeria will take effect from the 2nd of January next year.

According to Punch, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, in a panel session at the PwC Executive Session on Finance Bill and Tax Strategy, the bill would be revised yearly as the Federal Government is planning to grow the ratio of revenue to Gross Domestic Product (GDP) from 6% to 15% by 2023, with a greater percentage of revenue coming from non-oil sources.

The minister disclosed that the long-term goal of the bill is to stabilize the Nigerian economy, reducing the reliance of the foreign exchange earned from oil receipts. The government plans to engage stakeholders annually and ensure their opinions reflect on the outcome of the deliberations in the finance bill.

“One of the biggest challenges of all is our high dependence on oil for our economic activities, fiscal revenues and foreign exchange earnings. In 2016, Nigeria fell into recession due to its vulnerability to oil. Although the oil and gas sector accounted for just about 10% of the GDP, it represented 94% of export earnings and 62% of government revenues (federal and state) in 2011-2015,” Ahmed said.

However, Mrs Ahmed stated that the narrative is changing when it comes to the country’s reliance on oil receipts, even in the presence of high unemployment and poverty levels. The government stated that its desires are to see the country’s revenue to GDP ratio hit 15% by 2023 and tax to GDP ratio growth over 6% recorded in 2018.

“This narrative is changing but we still have much more to do to get to our desired revenue to GDP ratio of 15% by 2023, which we anticipate to come from non-oil revenues. We must grow our tax to GDP ratio from the current six per cent as of 2018.

“Tho the Nigerian economy is characterised by structural challenges that limit the country’s ability to sustain economic growth, create more jobs and achieve significant poverty reduction,” said Ahmed.

Mrs Ahmed stated that based on the non-oil revenue performance as of June 2019, the country was on track to further improve the tax to GDP ratio, although Nigeria is still below the sub-Saharan Africa average of about 19%.

Upshot:The bill is expected to stimulate growth in the Small and Medium Enterprise (SME) space, ultimately drive increased growth rate for the economy and ease business operations, alleviating the regulatory burdens for SMEs.

https://nairametrics.com/2019/11/28/finance-bill-new-tax-regime-to-take-effect-from-jan-2-fg/

Minimum wage, you have not started implementation, New Tax law proposal has not been passed by the national assembly, but the day of implementation is already known and has been announced. That is our own kind of democracy.

The pain of poverty and hunger in this regime is excruciating, never seen since the war.

I find it hard to believe or understand why very young people see hope and prosperity in this present system of governance.

To take away a man's physical capacity to feed or meet his needs may not atal be the damage intended but, to deprive him of his ability to THINK, or negotiate his exit, is worse.

Richdad

Buhari, you have come and you'll definitely go at the expiration of your being in the Villa. You won't see the last of us.... ko possible

Na only tax tax this FG sabi.

A government that only cares about what the people can do for her. I pity the condition of many Nigerians by this ti me next year...this is what " next level" entails

LOL!
Next level things...

If you pay tax on your salary, it's okay.

But I pity business men who are not importers who pay tax in Nigeria. What are you selling to cover your Tax, opex and capex ?

Nigerians are in trouble.

Charges, taxes, levies - left right and center. But corresponding development is non-existent.

Leaving this arena is a must...

by the time Buhari is done with this country
even suya and dead barbecue sellers will be forced to eat their own dead meat

worst president since mankind

Weird. You want to grow the tax to GDP ratio from single to double digit and the best you can do is tax an already struggling populace.

They say it will stimulate growth in SMEs, how exactly? A lot of them import. Land borders have been closed. So they have to use sea or air. That is increased cost, not forgetting overhead costs of running a business in Nigeria. You now add it taxes here and there...

No business can grow like that. Lots of businesses I see around are already on life-support. By the time Buhari is done with us, I am sure they will all opt for euthanasia.

OK naww. Next level tax. Make we dey enjoy the tax level dey go joor!

Chai Baba Chai Buhari

Buhari and his band of tax masters, are senile lots!

Ok

To end on August 22nd

Seriously we really need to protest the way odas r doing, hong kong, yellow vest etc.. These people r really taking us as fool..

Won fe pa aiye nigerians yi

All Apc Govt knows is Tax, double tax, tripple tax and then increase VAT. Good economic planning I have to say.. Draconian to say the least.

Nigerians brace up.Next level full financial ripoff upgraded version start 2020.

This is just the beginning as more things aimed at pushing the citizens to lawful hardship and suffering will unfold. I just weep for Nigerians! It's a big shame...

Next level about to start

Everything so called Buhari do is Nonsense.
Am not Affected because I never √ote for you

Still on this bill matter? Have y'all heard of the fantastic black Friday deals by ShopRite? This is the best discounts I ve seen in a long time, don't be left out.

It's because of the minimum wage payment.

They can't stand the increase and so they need to rip us off through new tax levels.

The worst government so far!

It is well.

Ibegtodiffer:
Minimum wage, you have not started implementation, New Tax law proposal has not been passed by the national assembly, but the day of implementation is already known and has been announced. That is our own kind of democracy.

That is the reward you get from PMB govt that crashed our economy into recession,increased unemployment level, increased poverty level,made many of our youth to live on nairabet,surebet,goalnaija for survivale & made the country now a laughing stock at the international community.

Good food nothing failed autocratic clueless retarded government

30,000 minimum wage have not yet kick off, what the government does is to strangle its citizens with tax..... Buhari administration has done more harm than good...nigerian, enjoy your next level