The senate president, Bukola Saraki, has commended Jaiz Bank Plc for its doggedness and commitment to non-interest banking, especially in encouraging and financing small and medium- scale enterprises (SMEs) in the country.
Saraki stated this yesterday in Abuja when the management team of Jaiz Bank Plc, led by its chairman, Board of Directors, Alhaji Umaru Abdul Mutallab,paid him a courtesy visit in his office.
The senate president who also assured the bank of the entire senate’s support, said every necessary laws and policies that needed to be amended as they affect non-interest banking would be deliberated upon by the senate with a view to strengthening the operations of non-interest financial system in Nigeria.
Earlier on, Umaru Abdul Mutallab said there was the need to cater for non-interest finance in the proposed changes to tax laws and policies to ensure a level playing field.
“Non-interest finance contracts if not properly construed in the tax laws/policies are susceptible to double taxation, hence the need to ensure that there are adequate provisions in the laws/policies to even the playing field when compared to taxation of conventional financial transactions.
“Over the years, we have worked with the Federal Inland Revenue Service (FIRS) towards ensuring tax neutrality for non-interest finance transactions and contracts. This is based on the global best practice we have seen from other jurisdictions like the United Kingdom, France, Ireland, South African and the like where their tax legislations were modified to cater for non-interest financial transactions.
“With the current move by the executive arm to modify a number of tax laws and the national tax policy, we believe time is apt to accommodate the changes needed to ensure that non-interest finance enjoys parity of tax treatment with conventional finance,” he said.
