The federal government has said that it is planning to suspend tax reliefs and rebates being granted to companies established in rural locations.
In the finance bill 2022 under consideration by the national assembly, the federal government sought amendments to the capital gains tax act, among which seeks to end reconstruction investment allowance and rural investment allowance, among others.
President Muhammadu Buhari, last week, transmitted the finance bill 2022 to the national assembly.
The proposal is billed for passage on Thursday, December 29, along with the 2022 supplementary appropriation bill and 2023 appropriation bill, The Punch reports.
In the bill, the federal government is seeking to make 34 amendments to 10 existing acts, namely capital gains tax act, companies income tax act, customs, excise tariff, etc (consolation) act, federal revenue service establishment act, personal income tax, petroleum profits tax act, stamp duties act, value added tax act, corrupt practices and other related offences act, and public procurement act.
The current section 32 of the CGT act, which provides for reconstruction investment allowance, partly reads, “(1) Where a company has incurred an expenditure on plant and equipment, there shall be allowed to that company an investment allowance as provided in subsection (2) of this section and shall be in addition to an initial allowance under the second schedule of this act.”
However, the federal government recently urged the national assembly to delete the section.
Similarly, the federal government wants section 34, which provides for rural investment allowance, deleted from the act.
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