Gas flaring: FG seeks 50% tax increase on erring firms
The federal government has proposed a 50 per cent tax increase on oil companies involved in gas flaring. This is contained in the Finance Bill 2022 transmitted to the National Assembly by President Muhammadu Buhari on Wednesday. Speaking on Thursday during a public hearing on the bill at the National Assembly, the Minister of Finance, […]
President Mohammadu Buhari
The federal government has proposed a 50 per cent tax increase on oil companies involved in gas flaring.
This is contained in the Finance Bill 2022 transmitted to the National Assembly by President Muhammadu Buhari on Wednesday.
Speaking on Thursday during a public hearing on the bill at the National Assembly, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said the proposed higher tax was to disincentive gas flaring so Nigeria could meet its climate change goals.
Mrs Ahmed highlighted other key provisions in the Finance Bill 2022 including the change of name of the Federal Inland Revenue Service to the Nigeria Revenue Service.
She said the chairman of the agency will now be referred to as Commissioner General.
The bill also proposed the 35% on electronic money transfer levy receipt to be paid to local governments as against an initial 15% to the federal government and 85% to states.
Chairman of the Senate Committee on Finance, Senator Solomon Adeola, explained that the amendments were not only for generating increased revenue for the government but also providing clarity, removing ambiguities, providing succour for deserving persons and sectors as well as bringing the country’s laws up to speed with global best practices.
“We are to understand that our economy is facing serious challenges occasioned by many factors including crude oil theft, armed insurgency and banditry as well as spiralling inflation rate that are being tackled by the government.
“The expectation is that with the possible passage of these amendments and its faithful implementation, our country can be propelled toward an appreciable economic outlook,” he said.