The Federal Government is proposing a reduction of the minimum tax rate to be paid by companies in the next fiscal year, due to the current economic climate exacerbated by the devastating impact of the coronavirus pandemic.
In the new proposal, the Federal Government plans to reduce the minimum tax rate from 0.5% to 0.25% of the gross turnover of the company.
According to a report from Punch, this disclosure is contained in the new draft Finance Bill 2020, which is being proposed by the Fiscal Policy Reforms Committee that was set up by the Federal Ministry of Finance, Budget and National Planning, and chaired by the Special Adviser to the President on Economic Matters, Dr Adeyemi Dipeolu.
The document from the Fiscal Policy Reforms Committee partly reads, “In light of the current economic climate, it is proposed that the rate of minimum tax is reduced from 0.5 per cent to 0.25 per cent of gross turnover, for the period ending between January 1, 2020, and December 31, 2021.’’
It should be noted that the Finance Bill 2019 which was assented to by President Muhammadu Buhari, changed the basis for computing minimum tax to 0.5% of the gross turnover of the company.
Minimum tax by definition is a tax that is payable by companies having no taxable profits for the year or where the tax on profits is below the minimum tax.
However, according to PricewaterhouseCoopers, some businesses that are exempted from the minimum tax in the first 4 calendar years of business operations include agriculture business or small companies.
The committee is also proposing a modification of the definition of the gross turnover, as the definition of gross turnover in Finance Act 2019 did not explicitly clarify the scope of income to consider in determining the gross turnover of a company for minimum tax purposes.
What you should know
Nairametrics had earlier reported that the Federal Government was proposing the exemption of small businesses from the payment of Tertiary Education Tax (TET), which is being collected by the Federal Inland Revenue Service (FIRS) in the new draft Finance Bill 2020.
This was seen as part of measures and incentives introduced by the government to assist small businesses who are still battling with the devastating impact of the coronavirus pandemic outbreak.
Exited N-Power beneficiaries to apply for CBN empowerment options
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Nigeria’s University lecturers union, ASUU, calls off 8-month strike
ASUU called off its eight-month long strike that has grounded academic activities in the public universities.
The Academic Staff Union of Universities (ASUU) has called off its eight-month-long strike that has grounded academic activities in the public universities. The union took the decision after it agreed to accept government’s total payment of N70 billion.
The was disclosed by ASUU via its Twitter handle on Friday after its meeting with the Federal Government’s team led by the Minister of Labour and Employment, Dr. Chris Ngige.
It tweeted, “The Academic Staff Union of Universities, ASUU, has shifted ground on FG’s offer. The Union insisted that payment of outstanding salaries must not be done as through the IPPIS platform as promised, if strike would be suspended.”
#JUST IN: The Academic Staff Union of Universities, ASUU, has shifted ground on FG's offer.
The Union insisted that payment of outstanding salaries must not be done as through IPPIS platform as promised, if strike would be suspended.
Wait for more details#ASUUANDFG
— Official_ASUU (@ASUUNGR) November 27, 2020
This is a developing story….
Terrorism: Nigeria records 39.1% reduction in deaths – GTI Report
Nigeria has recorded a 39.1% reduction in terror-related deaths, according to the 2020 Global Terrorism Index (GTI) report.
The 2020 Global Terrorism Index (GTI) report, published annually by the Institute for Economics and Peace (IEP), based in the United States, indicates that terrorism incidents in Nigeria fell by 27% in 2019.
This represents the lowest level of terrorism in Nigeria since 2011, with terrorism deaths in Nigeria reduced to 1,245 last year – a 39.1% dip from the 2,043 deaths recorded in 2018.
Despite the overall decline in terrorism in Nigeria last year, the country is still ranked as the third most impacted country in the world by terrorism, a position it has maintained for five consecutive years since 2015.
According to the latest annual GTI report, Afghanistan and Iraq are respectively the first and second most affected countries by terrorism.
Highlights of the report
- The decline in both terrorism incidents and deaths in Nigeria is attributed to a significant reduction in violence by armed Fulani herdsmen.
- The armed herdsmen are being held accountable for majority of terror-related deaths in 2018, with the latest GTI report showing a 72% decline in fatalities attributed to the herdsmen last year.
- Terror-related deaths and incidents attributed to Boko Haram in Nigeria increased by 25% and 30% respectively from the prior year.
- Over the past year, Boko Haram increased attacks on military targets, with deaths rising from 26 in 2018 to 148 in 2019.
- Globally, deaths from terrorism fell in 2019 to 13,826. This represents a 15% dip from the previous year and the fifth consecutive year of decline since peaking in 2014.
- Conflict remains the primary driver of terrorism, with over 96% of deaths from terrorism in 2019 occurring in countries that are already in conflict.
What you should know
- GTI report is published annually by the Institute for Economics and Peace (IEP) based in the United States.
- The GTI report, now in its eighth year, ranks 135 countries according to how they are impacted by terrorism. The indicators used by the GTI include the number of terrorist incidents, fatalities, injuries and property damage.
- Boko Haram, the deadliest terrorist group in Nigeria ranks second in the world, behind the Taliban in Afghanistan.
- There are 63 countries in 2019 that recorded at least one death from a terrorist attack and 17 countries that recorded over 100 deaths from terrorism. However, only Afghanistan and Nigeria recorded over 1,000 deaths and both countries had significant reductions in the number of people killed in 2019.
- Globally, the report estimates the economic impact of violence, including military, homicide, incarceration and terrorism to be $14.5 trillion in 2019. This is the equivalent of 10.6% of global GDP. The global economic impact of terrorism alone was estimated to be $26.4 billion last year.
- There are emerging new threats of politically-induced terrorism in North America, Western Europe, and Oceania, though with minimal fatalities.