The Federal Government has paused the implementation of the Financial Reporting Council of Nigeria (FRC) new levy under the 2023 amendment bill on all incomes accruing from annual dues paid by registered professionals, registered firms of professionals, public interest entities, and other entities as prescribed by the Council and approved by the Minister.
Speaking in Abuja on Wednesday at a stakeholders’ meeting organised by the Ministry of Industry, Trade and Investment, the Minister, Dr. Jumoke Oduwole, stated that she could not grant the suspension of the new levy as requested by the organised private sector.
She explained, “As you know, I am a lawyer, so a suspension will be a contravention of a legislation that was passed by the National Assembly. A pause is an administrative process simply to review what we have discussed today. And so that’s what we’re going to do, because we are a listening administration.
“The private sector has asked for a range of two to three months to an indefinite suspension. We are not going to do that. So, between now and at most 60 days, we are going to set up a technical working group comprised of FRC and organised private sector representatives.”
Oduwole further stated that the private sector had made formal written submissions, which would be reviewed. “The Chairman of the Tax Policy Reform Committee will also be a member of that committee.
“As you can see, it was a cordial conversation. You can see the Head of Nigeria’s organised private sector, you can see the CEO of the Financial Reporting Council, and we have listened because we are a listening government,” the Minister noted.
She added that the President had been briefed ahead, saying, “You know, we are a listening government, and we want the private sector to be comfortable.
“We want the economy to thrive, so this is what we are going to do. We have already looked at global best practices on each side, and we will come up with the best for Nigeria.
“We will make the proposition and then, of course, we have to go back to Parliament. Wherever we land, it is still going back to the National Assembly.
“We are not going to preempt the discussions and the dialogue between the stakeholders. What is clear is that they cannot pay what they used to pay, but they may not pay what they are being asked to pay,” she stated.
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Earlier, the Chairman of the Organised Private Sector, Dele Oye, urged the Federal Government to suspend the implementation of the levy, arguing that it would further add to the burden of multiple taxes businesses are struggling with in the country.
Similarly, the Director-General of the Nigeria Employers’ Consultative Association (NECA), Adewale-Smatt Oyerinde, also called for the suspension of the new levy.
He noted that businesses in Nigeria are struggling to survive and warned that adding more taxes could push many companies out of the market.
The Manufacturers Association of Nigeria (MAN), the Oil Trade Section, and other organisations present at the stakeholders’ meeting also requested the suspension of the new levy by the FRC.
On his part, the Chief Executive Officer (CEO) of the FRC, Dr. Rabiu Olowo, defended the levy, stating that it would enable the Council to serve financial entities better.
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