CEM REPORT | Nigerian Economic Summit Group is set to hold a Fiscal Policy Roundtable to assess the economic impact of the 2021 Finance Act which has generated an array of economic issues directly impacting fiscal framework of the government, private sector and the entire business environment.
According to the invitation sent to Continental Economy Magazine, the Fiscal Policy Roundtable with the theme “Impact Assessment of the 2021 Finance Act,” is scheduled to hold Virtually on Thursday, March 10, 2022 at 10:00am (GMT +1).
NESG said that the Finance Acts (enacted in 2019, 2020 and 2021) have become an emerging fiscal tradition in Nigeria. The primary objective is to progressively reform the fiscal environment and enhance non-oil revenue while supporting the implementation of Nigeria’s annual budgets.
The most recent amendment of the Act, the 2021 Finance Act signed into law on December 31, 2021, addresses five (5) key fiscal reform areas: domestic revenue mobilisation, tax administration, International Taxation, Financial Sector Reform, and Public Financial Management. It modifies thirteen (13) existing tax and fiscal laws. These include the Capital Gains Act, Companies Income Tax Act; Personal Income Tax Act; Tertiary Education Trust Fund (Establishment Act), amongst others.
Some highlights of the key changes in the 2021 Finance Act include: 10% Capital Gain Tax on gains from the disposal of shares; Education Tax increased from 2% to 2.5%; Excise duty extended to carbonated, sweetened non-alcoholic beverages at N10 per litre; tax on the turnover of non-resident digital service firms; NASENI levy of 0.25% of Profit before Tax; affirmation of FIRS as the primary agency of the Federal Government on tax collection, etc.
The Ministry of Finance, Budget and National Planning opines that the Finance Act yielded tangible results. Actual Non-oil tax revenue for 2021 stood at N1.62 trillion and was 118.8% above the target revenue. It is expected that the 2021 Finance Act will consolidate the perceived success of the previous Acts in accelerating non-oil revenue generation in Nigeria.
It is in this regard that the Fiscal Policy and Planning Thematic Group of the Trade, Investment and Competitiveness Policy Commission of the Nigerian Economic Summit Group will be hosting this Virtual Event.
The event seeks to:
- Assess the microeconomic and sectorial impact of the Act
- Assess the aggregate economy-wide impact of the Act
- Identify key bottlenecks to the implementation of the Act and tax administration matters in Nigeria
- Propose an action plan by the NESG-led advocacy to government and partners on tax and fiscal issues
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