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Federal Government Designates Certain Companies as Exempt from Withholding Tax

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The federal government has designated all electricity companies, including Generation and Distribution Companies (GenCos and DisCos), as exempt from Withholding Tax payments in Nigeria.

The new regulation, signed by Finance Minister Wale Edun, took effect from July 1, 2024, based on recommendations from the Tax and Fiscal Policy Committee chaired by Taiwo Oyedele.

According to the updated regulations, electricity and gas companies are now categorized under manufacturing and production, thereby qualifying for exemption from Withholding Tax.

Introduced in 1977, Withholding Tax serves as an advance payment of Income Tax on specific transactions, helping to ensure a steady revenue stream for the government and combat tax evasion.

Oyedele highlighted that the revised regime aims to simplify compliance, clarify eligible transactions, adjust applicable rates, and improve the timing of tax remittances, addressing previous complexities in the tax system.

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Glo Launches Affordable Health Insurance Scheme for Subscribers

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KGlobacom, in partnership with AXA Mansard Health Insurance, has introduced the Glo Health Insurance package.

This plan provides Glo subscribers with affordable healthcare, including tele-consultations and free drugs at pharmacies nationwide.

Subscribers can choose daily (N50), weekly (N300), or monthly (N750) plans via SMS, USSD, or the web. The package also includes a lottery, offering a chance to win up to One Million Naira each month.

Chief Marketing Officer of AXA Mansard, Surakat Adebola, emphasized the goal of making healthcare accessible and affordable for all Nigerians.


 

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Lagos State Plans to Tax Remote Workers to Boost Revenue to N5 Trillion

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The Lagos State government has unveiled a plan to impose taxes on remote workers, aiming to generate approximately N200 billion from the digital sector and other revenue sources.

This initiative is part of a broader strategy outlined in a recent document released at the Eko Revenue Plus Summit.

The government’s objective is to boost Lagos State’s internally generated revenue (IGR) to N5 trillion during the current administration.

Achieving this ambitious goal requires a multifaceted approach that includes harnessing technology, enhancing tax administration, broadening the tax base, and exploring new sources of revenue, particularly within the digital ecosystem.

The strategy also involves optimizing existing processes and seeking innovative non-tax revenue opportunities.

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In recent years, Lagos has consistently led in IGR performance. According to the National Bureau of Statistics, the state achieved the highest internal revenue collection in 2022, totaling N651 billion.

This new plan reflects the government’s commitment to leveraging technological advancements and expanding revenue streams to sustain and grow its financial resources.


 

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Controversy Surrounds Nigeria’s Oil Subsidy Scheme: Allegations of Financial Exploitation

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A major controversy has emerged surrounding Nigeria’s oil subsidy scheme, with accusations that President Tinubu is personally benefiting from the subsidy payments.

Despite the official removal of the subsidy, reports suggest it is still being secretly paid, effectively allowing Tinubu to pay himself. Critics argue this represents an extraordinary level of financial exploitation.

Additionally, allegations have surfaced that the government will continue to subsidize Tinubu even after he leaves office, ensuring his monopoly over Nigeria’s oil sector remains intact.

In 2023 alone, Nigeria reportedly imported over $2 billion worth of petroleum products through the Malta refinery. This stark increase in petroleum importation highlights a troubling trend in Nigeria’s oil importation future.

Historical data shows that Nigeria’s petroleum import from Malta was minimal from 2013 to 2022, with a sudden spike to $2.08 billion in 2023, raising concerns about potential financial manipulation and exploitation within the sector.

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