The Federal Government intends to expand the tax base, widen tax net and create a level playing field for businesses with the introduction of Tax Identification Consolidation and Collaboration (TICC), a key provision of the Economic Stabilisation Bill to be sent to the National Assembly.
Also contained in the Stabilization Bill is a provision for zero rated Value Added Tax (VAT) tailored to improve incentive regime to promote exports in goods, services, and intellectual property.
The ESB seeks to amend about 15 different tax, fiscal, and establishment laws to facilitate economic stability and set the country on the path for sustained inclusive growth. Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Mr. Taiwo Oyedele, gave the perspectives to the ESB on via his X handle.
He listed other policy objectives of the Federal Government policy ratified on Monday by the Federal Executive Council (FEC) chaired by President Bola Ahmed Tinubu, saying the proposed objectives to the Bill was designed to achieve inflation reduction and price stability, complement monetary policy measures with appropriate fiscal interventions to strengthen the naira and sustain exchange rates convergence; promote fiscal discipline and consolidation; enhance job creation and poverty alleviation and export promotion and diversification.
Other key amendments to be made to the law are designed to facilitate investment in the gas sector and simplify the local content requirements to ensure competitiveness, to reform foreign exchange regime to enhance the regulatory powers of the CBN, unlock more forex liquidity, strengthen the naira, and sustain rates convergence; grant tax reliefs for private sector employers in respect of wage awards and transport subsidies provided to their employees and tax relief to companies that generate incremental employment and retain such employees for a minimum of three years.