2020 finance bill scales second reading in Senate

The Senate has passed for second reading the “Finance Bill” otherwise known as a Bill for an Act to amend the Capital Gains Tax Act, Companies Income Tax, Personal Income Tax, Tertiary Education Trust Fund establishment Act among others.

The Bill sponsored by the Senate Leader, Abdullahi Yahaya (APC Kebbi) seeks to reform extant fiscal policies to respond to the economic and revenue challenges caused by a fall in international oil prices and the COVID-19 pandemic.

The Bill also seeks to reform extant fiscal policies to prioritise job creation, economic growth, socio-economic development,domestic revenue mobilisation to foster closer coordination with monetary and trade policies.

Senator Yahaya said the bill also seeks to provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two consecutive years of assessment and also reform commencement and cessation rules for small businesses.

He also explained that the bill seeks to provide a boost to small and medium scale enterprises by reducing their tax burden.

The bill also seeks to replace existing tax incentives with more targeted incentives to stimulate economic activities in capita market and infrastructure sectors.

According to him, the federal government was determined to generate sufficient revenue to finance its numerous projects steps taken should include devising ingenious means of expanding the tax base and collection of tax effectively.

In his contribution, Senator Smart Adeyemi (APC Kogi West) added that the government must find a way of recovering funds illicitly acquired and stashed in some banks to support the revenue drive of the country.

Other lawmakers who lent their voices to the debate also called for an amendment of the Fiscal Responsibility Act to allow for robust budgeting for the country.

Sen.Gabriel Suswan (PDP Benue) said the amendment would take care of the deficit ratio in the budget while Sen.Adamu Alero (APC Kebbi) called for more friendly ports to allow the growth of business in the country.

On his part, Sen Ike Ekweremadu (PDP Enugu) appealed for caution on deliberations and passing of the finance bill.

He warned that decision on passing the bill should be in the interest of Nigerians.

This is as Sen.Yusuf Yusuf (APC Taraba) advocated the use of tax reform as a means of diversification of the economy and promotion of the local industry.

Other Senators who contributed toward passing of the bill for second reading are Sen.Mathew Urhoghide(PDP Edo) Solomon Adeola (APC Lagos) among others.

Senate also at plenary considered for first reading five bills including the NDLEA Act CAP N30 LFN 2004 amendment Bill, 2020 by Sen. Sani Uba(Kaduna Central), Nation Wide Toll Bill, 2020 by Sen. Amosun Ibikunle (APC Ogun Central), FCT Borderline Communities Development Commission establishment bill, 2020 by Sen. Musa Sani (APC Niger) and National Human Rights Commission Act CAP N46 2004 repeal and enactment bill, 2020 by Sen. Bamidele Opeyemi (APC Ekiti Central).