By Mercy Aikoye
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, has clarified that the inheritance tax will not be reintroduced in the new tax bills. Oyedele made this statement at a public hearing on the four tax reform bills organized by the House of Representatives Committee on Finance.
Oyedele explained that the section of the law being interpreted as introducing inheritance tax is actually referring to family income. He emphasized that income is different from inheritance, with income being external to the family and inheritance referring to assets, wealth, and cash.
According to Oyedele, the provision in question is not new and has been part of Nigeria’s tax laws since independence. He cited the Personal Income Tax Act, Section 2, subsection 5, as an example of where this provision already exists.
Oyedele also addressed concerns about the potential impact on family businesses, stating that if family income cannot be attributed to a specific family member, tax will be imposed on the family as a whole.
Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, expressed concerns about investors producing in free zones and attempting to sell their products in custom areas, potentially disrupting the economy.
Adedeji criticized investors who claim they want to leave the country due to unfavorable policies, stating that Nigeria has a lot to offer and that investors should not try to exploit the system.
Oyedele also responded to allegations that 70% of investors have withdrawn their cash due to unfavorable policies, calling this claim false. He pointed out that Nigeria’s digital transactions have actually increased, indicating a healthy economy.
President of the Manufacturers Association of Nigeria, Otunba Francis Meshioye, expressed concerns that the Tax Bill excludes tax waivers on profits from manufactured exports. He argued that this could harm Nigeria’s export industry, which has already seen a significant decline in recent years.
The Oil Producers Trade Section of the Lagos Chamber of Commerce also raised concerns about the potential impact of the tax bills on the oil and gas sector, urging caution to avoid increasing the cost of doing business in Nigeria.
