The Federal Executive Council (FEC) on Wednesday, 1 February 2017, approved the revised National Tax Policy (NTP). The approval is an aftermath of the submissions made by the NTP Review Committee set up by the Minister of Finance in August 2016.
The revised NTP was issued in recognition of the need to increase tax income and diversify sources of government revenues. Thus its main objective, according to the Minister, is to guide the operations of Nigeria’s tax system as well as provide unambiguous implementation and monitoring strategies for stakeholders in the Nigeria tax system.
Highlights of the revised NTP include:
- Introduction – Comprises definition of tax, constitutional provisions, challenges of the Nigerian tax system and objectives of the NTP
- Policy Guidelines – Explains the underlying principles of the Nigerian tax system and ways of using taxation as a tool for economic management and development
- Responsibilities of Stakeholders – The obligation of various stakeholders: government, taxpayers, revenue agencies, etc. is spelt out
- Tax Administration – The NTP provides guidance on tax registration, compliance, administrative efficiency, available technology and dispute resolution
- Implementation – This section sets out implementation measures to be adopted to ensure that the objectives of the NTP are achieved
We therefore anticipate changes in the tax system in the nearest future, with keen focus on monitoring. Please be on the lookout for our newsletter on this subject where we will analyse in detail, the changes made to the NTP.