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Tinubu Approves New Withholding Tax Policy

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President Bola Tinubu has approved a new withholding tax policy, replacing the old policy established in 1977.

Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele announced this on Tuesday.

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The new withholding tax policy introduces significant reforms designed to alleviate the heavy burden that the previous system imposed on farmers and Small and Medium Enterprises (SMEs).

According to Oyedele, the updated regime addresses several long-standing challenges and introduces specific provisions, including: Small businesses will now be exempt from withholding tax compliance, reducing their administrative and financial burdens; businesses with low profit margins will benefit from reduced withholding tax rates, easing their cash flow and operational costs and producers, particularly farmers, will receive exemptions, fostering growth and sustainability in these critical sectors.

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Others are the new measures aim to enhance compliance and reduce opportunities for tax evasion and avoidance. The policy streamlines the process of obtaining credit and utilizing tax deducted at source, making it more accessible for businesses. Updates to the new withholding tax regime will reflect emerging issues and align with global best practices, ensuring Nigeria’s tax system is contemporary and effective, and the new policy will provide clear guidelines on the timing of deductions and definitions of key terms, eliminating ambiguities.

Oyedele identified several issues with the previous withholding tax regime, which evolved to cover more transactions over time, leading to complications and unintended consequences.

According to him: “Businesses, especially Small and Medium Enterprises (SMEs), faced ambiguities regarding compliance, eligible transactions, applicable rates, and remittance timing. This complexity resulted in an excessive compliance burden and strained working capital for low-margin businesses”.

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Other identified challenges include previous system treated withholding tax as a separate tax, adding to the list of multiple taxes and increasing the cost of doing business. Obtaining refunds for excess withholding tax was problematic, causing further financial strain on businesses. The lack of an exemption threshold made compliance costs uneconomical for taxpayers and enforcement costs high for tax authorities. Also, the overall structure of the old regime promoted tax inequity, failing to address emerging and contemporary issues effectively.

The new withholding tax policy is expected to bring significant relief and clarity to Nigerian businesses, promoting a more equitable and efficient tax system. The approved regulations will be published in the official gazette in the coming days, formalizing the changes and providing detailed guidelines for compliance.

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This reform marks a critical step in Nigeria’s ongoing fiscal policy and tax reforms, demonstrating President Tinubu’s commitment to creating a more conducive environment for businesses to thrive.

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Over 400 Earthquakes Rattle Japanese Island Chain

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A remote island chain in southern Japan has been rattled by more than 470 earthquakes since Saturday, the national weather agency said on Thursday, calling for residents to stay alert.

No major damage has been reported from the series of quakes with a strength of at least one — slightly perceptible to people seated quietly indoors — on Japan’s seven-point seismic intensity scale.

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As of Thursday morning, 474 such earthquakes had been observed around the Tokara island chain, south of Kyushu, the Japan Meteorological Agency (JMA) said.

Seismic activity has increased. As this region has experienced extended periods of earthquake activity in the past, please be vigilant against earthquakes that cause strong shaking,” it said in a statement.

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The largest tremors recorded since Saturday were two magnitude-5.1 quakes, one on Sunday and one on Tuesday.

They had a seismic intensity of four on the Japanese scale — described as an earthquake in which “most people are startled”, dishes rattle and “hanging objects such as lamps swing significantly”.

A similar period of seismic activity in the Tokara area was seen in September 2023, when 346 earthquakes were recorded within 15 days, according to public broadcaster NHK.

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Seven of the 12 remote Tokara Islands are inhabited, with around 700 residents in total.

READ ALSO:Japan Plane Turns Back After Man Bites Cabin Attendant

The islands, some of which have active volcanoes, are reached by a ferry that runs twice weekly in good weather.

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An earthquake of up to magnitude-6 strength could take place, so please be vigilant,” Hisayoshi Yokose, a marine volcanology specialist and associate professor at Kumamoto University, told NHK.

Japan is one of the world’s most seismically active countries, sitting on top of four major tectonic plates along the western edge of the Pacific “Ring of Fire”.

The archipelago, home to around 125 million people, experiences around 1,500 jolts every year and accounts for around 18 percent of the world’s earthquakes.

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The vast majority are mild, although the damage they cause varies according to their location and the depth below the Earth’s surface at which they strike.

On New Year’s Day 2024, more than 400 people died after a massive earthquake hit the Noto Peninsula in central Japan, including “quake-linked” deaths as well as those killed directly in the disaster.

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The January 1 quake and its aftershocks toppled buildings, caused fires and knocked out infrastructure at a time when families were celebrating the new year.

AFP

 

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Trade Volume Between Vietnam, Nigeria Surpasses $1bn – Envoy

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The Vietnamese Ambassador to Nigeria, Mr Bui Quoc Hung, said trade between Vietnam and Nigeria reached an all-time high of 1 billion dollars in 2024, making it the first time the trade volume between the two countries exceeded 600 million dollars.

Bui stated this in an interview with the News Agency of Nigeria (NAN) in Abuja on Wednesday.

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He expressed enthusiasm at the historical increase in trade volume, saying, “It’s a very remarkable achievement because, in the past, our trade volume typically ranged between 500 and 600 million dollars and last year, for the first time, it reached one billion dollars.”

The envoy noted the positive relationship enjoyed between Vietnam and Nigeria, Africa’s largest economy, in various fields.

READ ALSO:Meet Nigerian-British Florence Eshalomi, New UK Trade Envoy To Nigeria

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He highlighted areas of trade, indicating that Vietnam exports electronic products, garments, and textiles to Nigeria while importing raw materials, particularly cashew nuts.

Bui acknowledged the enormous opportunities for agricultural cooperation between the two countries, saying that Nigeria’s ongoing challenges with food security and Vietnam’s strengths in agricultural development could work for the mutual benefit of both countries.

The opportunity for agri-cooperation is huge between our two countries.

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“Vietnam has a strong economy, particularly in agriculture, which can significantly contributes to addressing Nigeria’s food security challenges,” he said.

The ambassador underscored the importance of fostering cultural exchange between the two countries.

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We need to have more exchanges of delegations and programmes between our specific artist groups or delegations from various countries and in different fields, particularly concerning art and culture,” he added.

He affirmed that the two countries would celebrate the 50th anniversary of diplomatic relations and emphasized the need to capitalize on such momentum to further strengthen cooperation.

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Popular American Actor, Joe Marinelli Dies Of Stomach Cancer

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Joe Marinelli, popular American actor, known for his roles in ‘The Morning Show’ and other television series, is dead.

Joe Marinelli reportedly died last Sunday at age 68 after a long battle with throat and stomach cancer.

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The actor’s wife, Jean Marinelli, confirmed his passage to The Hollywood Reporter.

READ ALSO:American Actor, Jonathan Majors, Found Guilty Of Assault On Ex-girlfriend

Reacting to his death, the actor’s colleague, Mark Duplass who worked with the deceased on ‘The Morning Show’, said.

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We have lost a great one. Joe Marinelli lived in the rare air.

“He was a generous performer, beautiful human, wide-eyed positivist. I will miss him dearly. I will try to live my life a bit more like his. We all should”.

 

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