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NBC, Rite Foods, others to pay new tax as FG identifies new revenue streams 

The NBC and other manufacturers of carbonated drinks may have to start paying excise duties as the FG identifies new revenue streams.

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taxes, tax, IMF, business, FAAC disbursed N617billions in April, as South-South scoop N72billions, VAT, Finance Minister, Zainab Ahmed says Nigeria VAT collection rate is low, NBC, Rite Foods, others to pay new tax as FG identifies new revenue streams ,,Finance Minister reveals how World Bank, AfDB pushed FG into requesting Chinese loan 

The Nigerian Bottling Company (NBC), Rite Foods Plc and other manufacturers of carbonated drinks may have to start paying excise duties as the Federal Government identifies new streams of revenue to help boost its revenue base.

This was announced by the Minister of Finance, Budget and National Planning, Zainab Ahmed on the sidelines of the World Bank/International Monetary Fund meetings holding in Washington DC, United States.

Ahmed made it known that since the Value Added Tax increase had been proposed, other streams of revenue the government was considering include the introduction of excise duties on carbonated drinks.

[READ MORE: IMF: Increase tax rate to manage fiscal crisis?]

Carbonated drinks include soft drinks like Coca Cola, Fanta, Bigi and excise duties are taxes levied on locally produced goods. Nairametrics understands that currently, excise is placed on non-alcoholic beverages, fruit juices, beer, stout and alcoholic beverages as shown on the website of the Nigeria Customs Service.

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excise duties

Speaking further, Ahmed stressed the importance of taxes and the plans of the government in ensuring citizens pay tax.

“There is also a proposal to build tax rates for SMEs. We also increase the minimum tax level to make it easy for people to plan their taxes. Nigeria, we don’t have adequate social contract. The government was not asking for or enforcing tax collection and, therefore, taxpayers also were not taking up their civic responsibilities. This is because we are largely dependent on oil revenue and people are not used to paying taxes.

“Very recently at the Nigeria economic summit, they shared a citizens survey and 75% of people that was surveyed said ‘we don’t think there is anything wrong in not paying taxes and it is not a problem’ and there was a few that said ‘I don’t see what the taxes are used for. So, why should I pay tax’?

We have a very low tax morale. We are planning a strong strategic communications process to educate people on why they need to pay taxes. Because we rely heavily on oil and it is not going to be there forever. So, we have to boost domestic revenue generation and use tax revenue to develop their economies and Nigeria should not be an exception.

[READ ALSO: FG moves to clamp down on tax evaders in mining sector]

“In expanding the revenue base, we have proposed the increase of VAT but there are also other revenue streams that we are looking at and some of them include the introduction of excise duties on carbonated drinks but there is a process to doing these things.

“The fact that our revenue is underperforming is not an excuse to bring down our revenue that is required to fund the national budget.”

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Chidinma holds a degree in Mass communication from Caleb University Lagos and a Masters in view in Public Relations. She strongly believes in self development which has made her volunteer with an NGO on girl child development. She loves writing, reading and travelling. You may contact her via - [email protected]

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Economy & Politics

Godwin Obaseki wins Edo State governorship election

Incumbent governor, Godwin Obaseki emerged winner in the Edo State gubernatorial election.

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Oil theft gulped $1.35 billion in first six months - Obaseki 

Independent National Electoral Commission(INEC) has declared Godwin Obaseki the winner of the Edo State gubernatorial election today.

Mr. Obaseki will return as the Governor of the state for a second term.

The results were declared by INEC on Sunday afternoon after the results were counted from all LGA’s on Saturday.

Obaseki had 307,955 votes, which was enough to be declared a clear winner over Ize-Iyamu’s 223,619 votes.

Obaseki took to his Twitter handle to thank the people of Edo State for their votes. He stated,

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“Words fail me in saluting our teeming supporters who displayed immense courage in the face of threats, intimidation and brutalization. The collective will of Edo people made it possible for us to triumph over godfatherism. Congratulations to all Edo people. This is our victory!”

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Tech News

TikTok’s owner seeks $60 billion valuation in US deal as Oracle, Walmart take stakes

Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global.

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Tiktok world’s most valuable startup is worth more than $100 billion

TikTok’s parent company, ByteDance is seeking a valuation of $60 billion for its video-sharing app, as Oracle Corp and Walmart Inc take stakes in the technology firm’s US operations to address the security concerns of the Trump administration.

According to a report from Bloomberg, Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global under an agreement that has gotten the approval of President Donald Trump.

The duo US firms would be paying a combined amount of $12 billion for their stakes if they reach an agreement with TikTok for the asking price of $60 billion.

READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected

The final valuation had not been set as the parties worked out the equity and measures for data security.

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It was also stated that China is yet to approve the deal, although regulators are said to have expressed support for any transaction in which BtyeDance still maintains control of its valuable recommendation algorithms and other proprietary technology.

It would be recalled that President Donald Trump, had threatened to ban the ByteDance owned TikTok, over national security concerns, but which some analysts see as part of the row between US and China. This pressured ByteDance into the deal as they looked to avoid the ban by the US government.

READ: ByteDance, Tiktok’s parent company, now worth over $100 billion

The US officials had expressed concern that the personal data of as many as 100 million Americans that use the app were being passed on to the Chinese government.

ByteDance turned down the proposal of a full buyout from Microsoft Corp but rather agreed to Oracle’s offer in which the Chinese parent company will still maintain a majority stake in the technology firm.

Trump told reporters on Saturday, ‘’I approve the deal in concept. If they get it done, that’s great. If they don’t, that’s ok too.’’

READ: President Trump dumps plan to force foreign students to leave the US

Trump’s new stance appears to conflict with his earlier executive order for China’s ByteDance to divest from the video-sharing app’s operations in the United States.

ByteDance is in a race to avoid a ban on TikTok after the US Commerce Department said on Friday that it would block new downloads and updates to the app from Sunday.

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According to market researcher, CB Insights, ByteDance is the most valued private start-up in the world at $140 billion. Under the proposed deal, ByteDance may end up owning as much as 80% of TikTok Global, which include the app’s operations in the US and the rest of the world excluding China. Venture firms like Sequoia Capital and General Atlantic may also acquire equity in the new business.

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Business

Lagos to shut Ojota’s axis of main carriage way of Ikorodu road for 3 months

The Commissioner advised all motorists to utilize alternative routes suggested during the stipulated time.

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Lagos shuts Ketu-Mile 12 section of Ikorodu road, outlines alternative routes, Motorists to pay N1000 penalty at Lekki-Ikoyi Toll Plaza

The Lagos State Government has announced the shutdown of the entire length of the main carriageway of Ikorodu Road from Ojota interchange to Ojota Second Pedestrian Bridge from Monday, September 21, 2020, for a duration of 3 months.

This is development is part of the next phase ongoing rehabilitation work on Ikorodu Road which is set to commence from the Ojota Interchange to Ojota Second Pedestrian Bridge and the Service lane inbound Lagos.

READ: FG, Lagos State collaborate to address declining infrastructure in Festac Town

While making the disclosure, the Lagos State Commissioner for Transportation, Dr Frederick Oladeinde, advised all motorists to utilize alternative routes suggested during the stipulated time for the repairs following the closure of the entire length of the main carriageway for reconstruction work.

Oladeinde in his statement said, “Vehicles coming from Maryland will be diverted at Odoyalaro into the Service lane and the BRT Corridor to link back the main carriageway at Ketu bus stop and Demurin junction respectively.’’

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READ: Lagos allows cinemas, gyms, others to reopen

The commissioner gave an assurance that the Lagos State Traffic Management Authority (LASTMA) and other law enforcement agencies will be available to direct traffic for free vehicular movement during the entire period of construction work.

While soliciting for the cooperation and support of residents and motorists that ply the axis, the Commissioner stated that the project is aimed at finding a lasting solution to the ever-busy road as well as to achieve the present administration’s traffic management and transportation policy objectives.

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