The Senate has passed for Second Reading, a Bill for an Act to amend the Companies Income Tax and for other matters connected thereto.
The Bill, which is sponsored by Senator Andy Uba (Anambra, PDP), scaled the First Reading hurdle on November 26, 2015 and it specifically seeks to amend Sections 34, 36, 39 and 40 of the principal Act.
In his lead debate, Senator Uba said the proposed amendments were to encourage investments in the industrial and mining sectors of the economy in the rural areas, where ordinarily it would have been unattractive to invest.
He added that the Bill directly address the issues of stimulating economic activities through greater tax incentives, engendering economic development, promotion of industrialization and job creation in Nigeria.
“When the Bill is passed into law, it is expected that the economic activities that would be generated through tax moratorium assured by the proposed Act, will generally provide the hitherto elusive employment opportunities for our qualified youths who today are roaming the streets of the urban areas in search of non-existent jobs,” he argued.
The lawmaker further stated that the Bill is one of the potent tools that could trigger the much-desired investments in local manufacturing and industrialization by both foreign and local companies,adding that it would also provide an opportunity for the development of rural areas and provision of infrastructure by members of the organised private sector.
He reasoned that the expected economic activities to be generated by virtue of the provisions of the amendments sought are to be concentrated in the rural and semi-urban areas, where infrastructures are lacking.
He however informed his colleagues during the debate on the Bill that the new clauses in the proposed law seek a ten-year tax exemption for a new company going into business where infrastructures such as electricity, water, or tarred road are not provided by government, while companies with investment in the mining and gas industries, respectively would be exempted for five years.
The Bill has been referred to the relevant Senate Committee for further legislative inputs.
