Brands and Marketing Business

Implementation of Financial Act will create better competitive grounds for brands, SMEs-APCON Ag. Registrar

APCON

Nneka Nwogwugwu, Abuja

The Acting Registrar of the Advertising Practitioners Council of Nigeria (APCON), Mrs Ijedi Iyoha has stated that the implementation of the Financial Act will create better competitive grounds for brands and Micro, small and medium enterprises (MSMEs).

 Iyoha who said this in a recent interview with Daily Times, also stated that the implementation of the new Financial Act will be favorable to brands and SMEs, thus, yielding positive impacts.

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Recall that President Muhammadu Buhari recently signed into Law the Finance Bill which was introduced alongside the 2020 Budget.

According to Buhari, the Finance Act will reform Nigeria’s tax laws to align with global best practices, support MSMEs in line with our Ease of Doing Business Reforms, incentivize investments in infrastructure and capital markets and Raise Government revenues.

Iyoha noted that the intentions of the Finance Act mean well for businesses in Nigeria, particularly MSMEs.

‘’The purpose of designing the Act to align domestic laws with global best practices means that the growth of MSMEs is identified as being central in reducing unemployment rate and improving the economy,’’ she said.

She pointed out that the Financial Act which is soon to be implemented will avail brands and SMEs, many opportunities to strengthen their market base.

She said the genuine attempt to reduce or eliminate double taxation derived from multiple laws is a boost to brands and SMEs.

‘’Another area of interest for brands and SMEs is in the introduction of new Company Income Tax (CIT). For small companies, tax rates are by virtue of the new Act, at 0% where turnover is up to N25 million, for medium companies at 20% when turnover is between N25 million to N100 million and for large companies of turnover of above N100 million at 30%.

‘’SMEs may worry less with the implementation of tax issues under this rule and pay more attention to their businesses

‘’categories of exempt incomes have been expanded to include profit of small companies and dividends declared from small manufacturing companies,’’ she said.

Iyoha also noted that brands and SMEs that are into local manufacturing will now have a better competitive ground as many imported goods are covered within items liable under customs and excise duties.

Still speaking on its positive impacts, she said the increase of threshold from N1000 to N10,000 for the application of N50 stamp duties on every transaction may not make much meaning to people but when one realizes that banks have been charging the same amount for transactions of less than N10,000 in the past then the effect may be appreciated.

‘’Every business values any means of spending less and making more. Where waiver or bonus is given in whatever manner it is well appreciated. 1% bonus is given to small and large companies that pays their tax liability at least before 90 days to the due date. Since tax payment is an obligation, such bonus is a gracious gift, ‘’ she said.

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Ihesiulo Grace

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