By Mercy Aikoye
Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has reaffirmed that the inheritance tax will not be reintroduced in the new tax bills. This clarification came during a 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, which is different from inheritance.
Oyedele emphasized that income is external to the family, whereas inheritance refers to assets, wealth, and cash. He cited the Personal Income Tax Act, Section 2, subsection 5, as an example of where this provision already exists. Oyedele assured that this provision is not new and has been part of Nigeria’s tax laws since independence.
Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, criticized investors who produce in free zones and try to sell their products in custom areas, potentially disrupting the economy. Adedeji argued that this practice creates economic distortion and is not acceptable.
Oyedele also addressed allegations that 70% of investors have withdrawn their cash due to unfavorable policies, calling this claim false.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. Meshioye 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. They argued that the incentives for oil production should be codified under the proposed tax reform.
Meshioye commended the government for the planned reduction of company income tax as contained in the bills, adding that this is a common practice globally to boost production and the economy. However, he proposed that the law allow only 25% of goods into the free zone, rather than the current 100% allowance.
