The Chairman, Drafting Sub-committee, and Fiscal Policy Reforms Committee Member, Ajibola Olomola, disclosed that the Nigerian Federal Government has proposed exempting small businesses from the Tertiary Education Tax, TET, in the new draft of the Finance Bill 2020.
Nigerian companies are all currently mandated to pay the TET which accounts for 2% of assessable profit at the end of a fiscal calendar year.
The tertiary education Trust Fund Act was introduced in 2011 to combat the rise in illiteracy by rehabilitating and harmonizing tertiary education policies in Nigeria.
According to Olomola, this development is to help such small companies still reeling from the effects of the pandemic to recover and also lessen the impact of the VAT increase on such small businesses.
Read his statements below:
“The Finance Bill 2020 will include certain provisions that allow the tax authorities to deploy information technology for the collection of taxpayer information of tax and reduce the cost of collection.
“In light of this proposal, stringent rules are also proposed to secure taxpayer confidentiality from unauthorized access by third parties.
“The Finance Bill 2020 will look to introduce significant penalties for breach of data confidentiality by tax officials.”