President Muhammadu Buhari has transmitted the Finance Bill 2021 to the National Assembly for consideration and passage.
The bill which was contained in a letter dated 7 December and addressed to the Senate President, Ahmad Lawan, who read it at the start of Tuesday’s plenary was also sent to the House of Representatives last week.
The president said his request for the passage of the bill is according to the provisions of Sections 58 and 59 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
President Buhari explained in the letter that the Finance Bill seeks to support the implementation of the 2022 Federal Budget of Economic Growth and Sustainability.
This will be achieved by proposing key reforms to specific taxation, customs, excise, fiscal and other relevant laws. He added that the legislation provides for enhanced domestic revenue mobilisation efforts to increase tax and non-tax revenues; and ensure tax administration and legislative drafting reforms, particularly to support the ongoing automation reforms by the Federal Inland Revenue Service (FIRS).
“Upon passage, the bill would accelerate International Tax Reforms to enhance the taxation of non-resident individuals and companies that nevertheless derive profit from Nigeria;
“And implement financial sector reforms to support ongoing capital market reforms relating to securities lending transactions, real estate investment trusts, Init Trust Schemes and the recapitalisation of insurance companies,” part of the letter read.
He also informed the lawmakers that the Finance bill would prioritise critical public financial management reforms regarding the FIRS’ vital role in coordinating tax administration as well as the enforcement of key fiscal rules under the 1999 Constitution, Finance (Control and Management) Act and other relevant laws.
The bill will be referred to the Senate Committee on Finance for scrutinisation and public hearing, after which it will be considered and passed.