NEC reviews 2020 finance bill, moves to halt food price hike

The National Economic Council (NEC) on Thursday considered the 2020 Finance Bill that seeks to provide more tax incentives for Nigerian businesses and individuals earlier approved on Wednesday by the Federal Executive Council (FEC).

Presidential spokesman, Laolu Akande, who released the outcome of the meeting said the Minister of State for Budget and National Planning, Mr Clem Agba, made the presentation at the virtual NEC meeting for the month of November 2020.

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Laolu said some highlights of the proposed bill, which is now headed to the National Assembly include: “Reduction in duties on tractors from 35 to 10 per cent.

“Reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent.

“Reduction of levy on motor vehicles for the transportation of persons (cars) from 35 per cent to 5 per cent.

“Exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND)-companies with less than N25m turnover are eligible

“50 per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between January 1st, 2020 and December 31st, 2021.

“Granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition (CACOVID).

“Clarification that only compensation for loss of office up to N10 million would be tax-exempt. (Clarification that it is the employer’s obligation to account for tax on payments relating to compensation for loss of office.)

“Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business.”

Akande said prior to the Finance Act 2019, compensation paid to an employee for loss of office over and above N10, 000 was subject to capital gains tax, stating that there were two notable issues with the provision.

The NEC also resolved that the planned zonal engagements in addressing the deeper roots of the ENDSARs protests should proceed with the focus on youths and civil society organisations dealing especially with issues or jobs, and employment.

The council added that the states level interactions should proceed in places where it had not been reported.

The meeting urged states and the federal government to adopt urgent measures including social protection schemes to deal with the current trend in food prices. It also resolved that the federal government would pursue the implementation of its ESP -Agric plan and others to positively improve the situation in the sector. Council approved the presentation on the Nigeria Road Safety Strategy (NRSS II) 2021-2030 which seeks to, among other things, reduce road accidents and fatalities and institute a basis for sustainable road traffic crashes and fatalities reduction.

Council received a state report on COVID-19 by the Director General NCDC, Dr Chikwe Ihekweazu, which revealed that Lagos, FCT, Oyo, Kaduna, River and Plateau account for more than 80% of the case over the last week.