The Minister of Finance, Budget and National Planning, Zainab Ahmed has made it known that dividends paid from the profits of oil companies will no longer be tax-exempt if the finance bill submitted by President Muhammadu Buhari is passed by the national assembly.
She announced this in a statement released on Tuesday.
The Finance Bill which has passed the second reading at the Senate was presented to the joint session of the National Assembly precisely on October 14 2019.
The President forwarded the Bill 2019 for passage in pursuant to sections 58 and 59 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended).
According to the statement, this bill seeks to improve revenue by removing the tax exemption granted for dividends or income received from companies charged under the petroleum profits tax act.
The bill which contains some changes to the companies income tax act, value-added tax act, petroleum profits tax act, personal income tax act, capital gains tax act, customs and excise tariff act and stamp duties act was submitted alongside the 2020 budget proposal.
Providing clarity on some of the amendments to be made with the bill, Ahmed said it seeks to provide efficiency in the administration of individual income taxes in Nigeria.