Business News
FIRS issues deadline for taxpayers to obtain Tax Identification Number
The FIRS has set a deadline for all taxpayers and organisations to obtain Tax Identification Numbers (TINs).
The Federal Inland Revenue Service (FIRS) has set a deadline for all taxpayers and organisations to obtain Tax Identification Numbers (TINs). The agency expects all documents supporting business transactions to display the TIN before April 12, 2020.
This deadline was given by the FIRS in a public notice signed by its Chairman, Muhammed Nami.
The notice stated that every company or business is to provide the number to relevant providers of financial services not later 12th April 2020. This would be done in order for the update to be done in their existing records of accounts opened before the Finance Act 2019 came into effect.
The FIRS also stated that banks and other financial institutions are required to request for TIN as a precondition for opening new accounts for companies and any other business.
[READ MORE: FIRS tightens noose on deduction of stamp duty, CIT, others)
More details: The FIRS went on to explain in the notice that, “Every person engaged in banking and other financial services in Nigeria shall require all companies to provide their TIN as precondition for opening an account or in case of an account already opened within three months of the passage of this act, the bank requires such TIN to be provided by all companies as precondition for continued operation of their bank accounts.”
Meanwhile, FIRS notified taxpayers in a separate notice that payment of tax is to be made on or before the due date of filing in one lump sum or instalment. This is said to be in line with the amendments to Section 77 of the Companies Income Tax Act, (CITA) by Section 18 of the Finance Act.
FIRS added that any tax due and unpaid by the due date of filing shall attract interest and penalties as provided in the extant tax laws.
What you need to know:
- Banks will be required to request Tax Identification Numbers (TINs) before opening accounts for individuals while existing account holders must provide their TINs to continue operating their accounts.
- Emails are to be accepted by the tax authorities as a formal channel of correspondence with taxpayers.
- Banks in Nigeria currently demand TINs under the instruction of the Federal Inland Revenue Service (FIRS).
- With the new law, TIN is now a critical KYC information required by banks which inadvertently gives the FIRS access into the banking transactions of taxpayers.
Business News
Cost of building materials rise by over 60% in one year
The price of building materials in the market experienced a rise of over 60% in the last one year.
The cost of Cement, Steel, Tiles and Plaster of Paris (PoP) cement, among others have risen by over 60% between March 2020 and March 2021.
For instance, the cost of steel, which was sold at N234,000 per tonne as of March 2020, had increased to N380,000 at the end of March 2021. This represents a 62% increase within the period under review.
While Dangote Cement increased from N2,600 to N3,800 (though it is sold at N3,600 in some areas in Lagos), Lafarge Cement and BUA Cement increased from N2,400 and N2,250 to N3,600 and N3,250 respectively within the same period.
The price hikes are not limited to the cost of steel and cement alone but also to other materials like Tiles, PoP cement, and roofing sheets.
The cost of super white cement increased from N2,500 (25kg) to N3,700, and the cost of high-quality white cement (40kg) also increased from N4,000 to N6,500.
The cost of gravel increased from N80,000 to N140,000; that of 8mm diameter and 25mm diameter (imported) increased from N234,000 and N245,000 to N330,000 and N380,000 respectively.
Doors are not left out in the hike. Costs of Flush door (high quality), Panel door and Turkish steel door (1,500 x 2,100) also rose from N35,000, N40,000, N165,000 to N60,000, N75,000 and N235,000 respectively.
Why the hike?
Industry experts have attributed the hike to persistent depreciation of the naira and the rising cost of other building materials.
Tunde Oluwole, a fellow of the Nigerian Institute of Builders, explained that the development was caused by high interest rate, inflation, increasing exchange rate and scarcity of forex in the country.
He said, “The increasing prices in Nigeria is a result of the combined effects of high-interest rates, devaluation of the naira, inflation, and non-effective distribution network of the materials.”
To Kolawole Adebisi, an Estate Developer, the development in the cement industry is caused by the ban of imported cement in the country.
He told Nairametrics that he is not against the ban, as the government’s intention is to boost local production of cement but explained that “the local manufacturers were unable to produce enough cement to meet the demand and this contributed to the rising cost of the product.”
Business News
FG to extend fuel subsidy for 6 months
Reports indicate that the FG plans to spend N720 billion for the next 6 months on Premium Motor Spirit (PMS) subsidies.
