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FG Rakes In N127.03bn Tax From Calls, SMS

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The Federal Government made N127.03bn from Value Added Tax on calls, SMS, data, and other information and communication services in the first six month of the year.

This is 10.69 per cent of the total N1.19tn that was collected as VAT within the period under review according to data from the National Bureau of Statistics. The government charges 7.5 per cent for the consumption of telecommunication services.

Speaking on the contribution of the sector in the second quarter of 2022, the NBS said, “In terms of sectoral contributions, the top three largest shares in Q2 2022 were Manufacturing with 33.08 per cent; Information and communication with 18.98 per cent; and Mining & quarrying with 10.60 per cent.”

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The information and communication sector comprises of the activities of telecommunications and information services; publishing; motion picture, sound recording and music production; and broadcasting according to the NBS’s grouping for Gross Domestic Report.

Telecoms is the largest subsector in the sector contributing about 80 per cent of the total sector’s contribution to GDP. The subsector contributed 76.29 per cent, and 79.49 per cent to the sector’s nominal and real GDP in the first half of 2022.

It contributed N4.84tn to the nation’s real GDP and N7.94tn to its nominal GDP. To calculate the sector’s contribution to the economy, the NBS considers, “Telecommunication and Information Services: Gross Output: revenue from telephone, telex, Facsimile, telegraph, and other income from satellite and internet services.

“Intermediate consumption: transit fees, operational expenditure, minor repairs and maintenance and other expenses. Publishing: Gross Output: revenue from publishing services.

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“Intermediate consumption: This includes details of the cost structure including transportation fees, operational expenditure, minor repairs etc. Motion Picture and Sound Recording: Gross Output: revenue generated/total sales from the number of movies and sound recordings produced including revenue generated from TV rights, royalties and fees.

“Intermediate consumption: Detail on the cost structure of operating firms including transportation fees, operational expenditure, minor repairs and maintenance, and other administrative expenses. Broadcasting: Gross Output: public corporation data derived from Accountants General’s reports, while the private component relies on revenue generated from services rendered e.g. advertisement.

“Intermediate consumption: details of the cost structure of market participants which include transportation fees, operational expenditure, minor repairs and maintenance.”

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According to the government it aims to improve efforts aimed at improving VAT coverage and collection. Considering dwindling oil revenue, the government has increased efforts at increasing tax revenues. Despite contributing a chunk of VAT revenues, the government recently made moves to add a five per cent excise duty on telecom’s services which would have increased telecoms consumption tax to 12.5 per cent.

Although, the plan has been suspended, the Minister of Communications and Digital Economy, Isa Pantami, revealed that the sector pays a total of 41 taxes.

He said, “Excessive taxation has been a central challenge of the Information and Communications Technology sector.”

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CAC To Cancel Certificates Of BDCs With Revoked Licences

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The Corporate Affairs Commission (CAC) has said it would cancel the certificates of incorporation of Bureaux De Change(BCDs) whose licences have been revoked by the Central Bank of Nigeria( CBN).

The Nation reported in February the CBN revoked the licences of 4,173 Bureau De Change operators over their failure to meet regulatory guidelines.

In a statement by its acting Director, Corporate Communications, Sidi Hakama, CBN explained that the regulatory provisions flouted include nonpayment of all necessary fees within the stipulated period.

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CBN said: “The affected institutions failed to observe at least one of the following regulatory provisions: Payment of all necessary fees, including licence renewal, within the stipulated period in line with the guidelines.

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“Rendition of returns in line with the guidelines; compliance with guidelines, directives, and circulars of the CBN, particularly Anti-Money Laundering, Countering the Financing of Terrorism and Counter-Proliferation Financing regulations.”

However, in line with the above directive by the CBN, the CAC in a notice on its website on Wednesday, said the certificates would be cancelled within three months if the affected companies do not change the names and objects of such companies.

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The general public is hereby informed that following the revocation of the operational licenses of 4,173 Bureau De Change companies by the Central Bank of Nigeria vide a Federal Republic of Nigeria Official Gazette (Vol. 111) No. 37 of February 27, 2024 for noncompliance with Regulatory Standards, the Corporate Affairs Commission in the exercise of its powers under section 8(1)(e) of the Companies and Allied Matters Act, 2020 advises these companies to within three months from the date of this publication, change the names and objects of such companies.

“Failure to change the names and objects within the stipulated time frame shall result in cancellation of certificate of incorporation and dissolution. It is to be noted that it is unlawful for a company whose certificate has been deemed dissolved to carry on business,” the CAC notice reads.

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FG Suspends Taxes On Maize, Wheat, Rice, Others

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The Federal Government has suspended duties, tariffs and taxes on some essential food items imported through land and sea borders.

Minister of Agriculture and Food Security, Abubakar Kyari, announced this at the National Press Centre, Abuja.

Kyari also said the Federal Government has also inaugurated the Renewed Hope National Livestock Transformation Implementation Committee to develop and implement policies that prioritize livestock development and align with the National Livestock Transformation Plan.

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He stated that the listed food items, which include maize, wheat, husked brown rice and cowpeas, will enjoy a 150-day Duty-Free Import Window.

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He added that the move is part of the Presidential Accelerated Stabilization and Advancement Plan, which is aimed at achieving food security and economic stability in the country.

According to him: “The Federal Government has announced a 150-day Duty-Free Import Window for Food Commodities, suspension of duties, tariffs and taxes for the importation of certain food commodities (through land and sea borders). These commodities include maize, husked brown rice, wheat and cowpeas.

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“Under this arrangement, imported food commodities will be subjected to a Recommended Retail Price (RRP).

“I am glad to reiterate that the Government’s position exemplifies standards that would not compromise the safety of the various food items for consumption.

“In addition to the importation by the private sector, the Federal Government will import 250,000MT of wheat and 250,000MT of maize. The imported food commodities in their semi-processed state will target supplies to the small-scale processors and millers across the country.”

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CAC Extends PoS Registration Deadline 

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The Corporate Affairs Commission has announced the approval to extend the mandatory Point of Sales agents, super agents and sole agents registration to September 5th, 2024.

The commission made the announcement in a statement signed by its management and posted on its Facebook page on Saturday, giving a 60-day extension.

It said the extension is to give sufficient time to operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.

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The statement read, “The Corporate Affairs Commission wishes to notify Fintech Operators also known as Point of Sales Operators that the initial deadline of 7th July 2024 given for the registration of sole Agents, Super Agents and Agents has been extended for sixty days beginning from 7th July 2024 to the 5th September 2024.

“This is to give sufficient time to Operators particularly those in remote areas who might have encountered network challenges to so register and continue with their businesses.”

It added operators who continue to disobey after the new deadline will risk losing their businesses and facing prosecution for assisting criminal activities.

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“Operators who fail or refuse to register at the end of the extended deadline run the risk of losing such businesses and prosecution for aiding and abetting criminal activities,” it said.

 

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