The Chairman/CEO of the Federal Inland Revenue Service, Muhammad M. Nami was live on Good Morning Nigeria – A daily talk show on the NTA – on Friday 31st January 2020 alongside others to discuss the Finance Bill 2019.
Here are three key things the FIRS Chairman said:
1 – “It is the statutory responsibility of all Nigerians who register with CAC to also do same with FIRS and to file returns of their transactions regularly”
2 – “The moment you add value to certain goods that are statutorily exempted they become taxable”
3 – “Basic unprocessed food items like yam, rice, cassava as it is in the hands of the farmer you do not pay tax on them. But when you buy and process them, you add value to them. Once value is added, VAT is charged”
Also, did you know that:
1. FIRS is a regulator and implementor of the Finance Bill 2020 as the apex tax collecting body of the country.
2. Every business registered in Nigeria is expected to register as a VAT Agent with the FIRS.
3. Essential items are excluded from the Value Added Tax (VAT). Such items include pharmaceuticals, food and educational items.
4. Every item that has value added to it is liable to pay the Value Added Tax (VAT).
5. The Act promotes Ease of Doing Business as it gives incentives to small businesses, by giving them tax breaks, reduced tax rates among others!