List of New Taxes in the 2023 Finance Act and How They Might Affect Nigerians
- There are new taxes included in this year’s Finance Act which seek to affect Nigerians’
- The tax includes taxes from betting, gaming and digital assets such as cryptocurrecies, among others
- The Act increased taxes on soft drinks and beverages from 10 to 20 per cent leading to manufacturers protesting the increase
The 2022 Finance Act which became effective January 2023 contains a lot of new taxes
The Finance bill became law when President Muhammadu Buhari assented to it, making it lawful for Nigerians.
Source: Getty Images
It proposes critical reforms to tax laws and other relevant regulations in the country.
Key features of the 2022 Finance Act
The Act provides a slew of taxes which seek to bring in more revenue to the cash-strapped Nigerian government seeking to increase revenue to service more debts.
PAY ATTENTION: Subscribe to Digital Talk newsletter to receive must-know business stories and succeed BIG!
The Nigerian government has been harping on the need to raise revenue to match its bloated expenditure and service external debts.
The list of new taxes:
Digital Assets Tax: The Act says that profits on digital assets, including cryptocurrency, are taxable at the rate of 10 per cent.
It also proposes that income from betting and lottery business be taxable under the Companies Income Tax Act.
Others are
- Capital Gains Tax
- Companies Income Tax
- Custom, Excise Tariff
- Personal Income Tax
- Petroleum Profits Tax
- Stamp Duty
- Value Added Tax
The 2022 Finance Bill is currently undergoing legislative consideration. The Bill seeks to amend the following laws:
According to reports, companies engaged in winning, capturing, production and utilisation of gas will be entitled to a single 50 per cent investment tax credit on its qualifying expenditure.
The Act which has since gone into operation received a mixed reaction, especially with the increase in taxes payable by soft drinks and beverage manufacturers in Nigeria.
In the 2021 Finance Act, the federal government introduced an excise duty called Sugar Tax.
Minister of Finance, Budget and National Planning, Zainab Ahmed explained that the tax on soft drinks would discourage excessive sugar consumption which contributes to diabetes, obesity and other sugar-related ailments.
Per the Daily Trust report, the sectoral arm of the Manufacturers Association of Nigeria (MAN) raised the alarm the new tax burden of an additional 20 per cent tax will compound the woes of manufacturers.
According to the manufacturers, the N10 per litre tax is also destroying their businesses and rejecting the proposed new tax.
FG moves to increase tax on carbonated drinks, manufacturers kick
Recall that Legit.ng reported that the recently proposed increase of tax on soft drinks has generated heated controversy as the Manufacturers Association of Nigeria (MAN) insists that the new tax coming after the N10 per litre is against businesses.
In the 2021 Finance Act, the federal government introduced an excise duty called Sugar Tax.
Minister of Finance, Budget and National Planning, Zainab Ahmed explained that the tax on soft drinks would discourage excessive sugar consumption which contributes to diabetes, obesity and other sugar-related ailments.
Source: Legit.ng
