Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, has clarified that the new tax bills will not reintroduce an inheritance tax. Speaking at a House of Representatives Committee on Finance hearing on the proposed tax reform bills, Oyedele explained that a misinterpretation of the law led to the assumption that inheritance tax was being introduced. He emphasized that the provision in question pertains to family income, which differs from inheritance.
He further explained that income is external to the family, while inheritance refers to assets, wealth, and cash. Citing the Personal Income Tax Act (Section 2, Subsection 5), he assured that this provision is not new and has been part of Nigeria’s tax laws since independence.
Meanwhile, Federal Inland Revenue Service (FIRS) Chairman Zach Adedeji criticized investors operating in free zones who attempt to sell their products in custom-regulated areas. He argued that such practices distort the economy and should not be allowed.
Addressing claims that 70% of investors have withdrawn funds due to unfavorable policies, Oyedele dismissed the assertion as false, pointing out that Nigeria’s digital transactions have actually increased, reflecting economic stability.
Otunba Francis Meshioye, President of the Manufacturers Association of Nigeria, raised concerns about the tax bill’s exclusion of tax waivers on profits from manufactured exports, warning that this could further weaken Nigeria’s already struggling export sector.
The Oil Producers Trade Section of the Lagos Chamber of Commerce also voiced concerns over the potential impact of the tax bills on the oil and gas industry, advocating for codified incentives to support production.
While commending the planned reduction in company income tax, Meshioye proposed limiting the percentage of goods allowed into free zones to 25%, as opposed to the current 100% allowance, to better regulate the sector.
