FG considers lower taxes for small businesses

As part of its economic stimulus plan, the Federal Government is considering a reduction in the income tax rates payable by Small, Micro and Medium Enterprises in the country.
The reduction in tax rates is part of the recommendations presented to the Minister of Finance, Mrs. Kemi Adeosun, by the 12-member committee, headed by Prof. Abiola Sanni of the University of Lagos, on review of the current National Tax Policy.
A reduction in income tax rates for small-scale businesses would encourage compliance, help to encourage more start-ups, boost the profitability of the existing businesses, generate new jobs and make more contributions to the nation’s GDP.
Other recommendations from the Committee include; the abolition of minimum tax, which results in loss-making companies been required to pay tax; and enactment of a number of amendments to the current tax legislation, including the one relating to the taxation of Real Estate Investment Trusts.NNPC TO PAY JV CASH CALL ARREARS THROUGH ROYALTIES
The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Dr. Maikanti Baru has said that, modalities that will enable it to exit Joint Venture (JV) cash call arrears are being worked out, by ensuring that outstanding and future payments are liquated from oil and gas royalties and taxes under a first line charge model.
The nation’s oil and gas production structure is majorly split between Joint Ventures onshore and in shallow water with foreign and local companies and production sharing contracts in deepwater offshore. The NNPC owns between 55 per cent (for JVs with Shell) and 60 per cent (for all others) and the JVs are jointly funded by the private oil companies and the Federal Government through the corporation. Production from JV assets has over the past few years seen significant decline, partly due to funding constraints occasioned by the NNPC’s inability to meet its share of cash call obligation.
Dr. Baru noted that the current JV payment structure required urgent review, adding that the new model being proposed by the NNPC would enable the corporation to plough back the profit and grow the oil and gas business in the upstream for the benefit of all stakeholders.LAGOS TRADE FAIR TO APPLY SECTOR-BASED SPACE ALLOCATION
The organizers of the 30th Lagos International Trade Fair have introduced a scientific approach to space allocation of the pre-demarcated floor spaces, using the coding system for ease of allocation and identification, based on sectors in order to improve space allocation process and facilitate access to exhibitors.
According to the Vice President and Chairman of the Trade Promotion Board, Lagos Chamber of Commerce and Industry, Mr. Sola Oyetayo, the 2016 fair will feature improved scientific approach to space allocation.
Over 500,000 visitors are expected at the fair over the 10-day period with over 200 foreign exhibitors from more than 15 countries.
The fair has been scheduled to hold from November 4 to 13, 2016 with the theme “Positioning the Nigerian economy for diversification and sustainable growth”. It would be made up of three segments namely; the large consumer retail fair, the corporate business to business exhibition and Lagos creative industry fair.

INDIA PLEDGES TO BUY MORE NIGERIAN CRUDE OIL
The Indian Government has pledeged to increase the volume of crude oil it buys from Nigeria and also promised to invest $5bn in the Nigerian economy.
The Indian Vice President, Mohammad Ansari, stated this at the State House, Abuja, when he visited President Muhammadu Buhari of Nigeria.
Buhari noted that India had already invested about $10bn in the Nigerian economy. He said Nigeria would emulate India’s agricultural model and capacity to feed its one billion population and also export to other countries, describing India as “sustainable and prosperous” nation.

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