Nigeria Unveils Plan To Tax Foreign Residents
Date
9/26/2024 7:00:09 PM
(MENAFN- The Rio Times) Nigeria's federal Executive Council has proposed a groundbreaking amendment to the National Identity Management Commission Act.
This new legislation aims to assign national identification numbers to foreigners living in Nigeria. The move comes as part of a broader economic stabilization bill designed to boost the country's revenue.
The proposed amendment seeks to expand the pool of registered individuals. It will now include foreign persons with a taxable presence or income source in Nigeria.
The government plans to make the use of national identification numbers mandatory for tax-related transactions. Under the new law, anyone residing in or subject to taxation in Nigeria would be required to register.
This applies regardless of citizenship status. The legislation would effectively impose taxes on expatriates and immigrants earning income within the country.
Bayo Onanuga , the President's Special Adviser on Information and Strategy, shed light on the proposal. He explained that if passed, the bill would require all residents, including foreigners, to register for a national identification number.
Nigeria's Tax Reform
The new system would link a person's national identification number to their tax identity. However, this change would enable the government to tax foreign residents and subject them to Nigeria's tax structure.
Previously, the law prohibited foreigners from registering for national identification numbers. This initiative represents a significant shift in Nigeria's approach to taxation and identity management.
It aims to address the country's substantial foreign debt and generate additional revenue. The proposal underscores Nigeria 's efforts to modernize its fiscal policies and broaden its tax base.
As the bill moves through the legislative process, it has sparked discussions about its potential impact. Proponents argue it will increase government revenue and improve economic stability.
Critics, however, raise concerns about implementation challenges and possible effects on foreign investment. The proposed legislation marks a pivotal moment in Nigeria's economic strategy.
Additionally, it reflects the government's determination to leverage all available resources to strengthen the country's financial position.
In short, the coming months will likely see intense debate as lawmakers and stakeholders weigh the merits of this ambitious plan.
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