UNDERSTANDING VALUE ADDED TAX (VAT) IN NIGERIA
It is called Value Added Tax. It is very difficult to evade VAT due to BVN and Bank Statement exposures. Amount payable to Government is calculated by computing 5% of your sales less 5% of your Purchases. Deadline for (filling) VAT to Govt is 21st day of new month. Failure to file before deadline date is N5,000.00 per month but on Compounding basis. Only 4 industries are exempted from paying and receiving VAT (Medicals, Educational, Agricultural and Dealers in Baby clothing and Food). You are yet to escape unpaid VAT for the last 6 years. You constantly need to work with your Consultant to ensure full VAT and other Taxes compliance.
It should not take forever to register a company.
The entire process for registering a business name normally takes 1 – 2 weeks, depending on the workload of the corporate affairs commission and other factors.
You may not need a lawyer or an agent to register a business name, however, if you want to register a company, you need the services of a lawyer or other accredited agents.
Equity market rebounds with N52bn profit
Trading on equity on the floor of the Nigerian Stock Exchange (NSE) closed yesterday on a positive note after two days of bearish trade, as the market capitalization added N52 billion to close at N12,100 trillion. The rebound is coming after Nigeria’s central bank left the benchmark interest rate unchanged at 14% in September. The NSE All Share Index (ASI) appreciated by +0.44% to close at 35,103.40 basis points as against -1.15% depreciation recorded previously. Its Year-to-Date (YTD) returns currently stands at +30.62%. Market breadth closed positive as CHAMPION led 24 gainers as against 22 losers topped by MORISON at the end of yesterday’s session – an improved performance when compared with previous outlook. The summary of the market activities revealed that a total of 136 million shares, valued at N1.2 billion, exchanged hands in 2,860 deals
MPC member raises concern over FG’s overbearing on CBN
A member of Monetary Policy Committee (MPC), Dr Adedoyin Salami, has raised concern over the Central Bank of Nigeria (CBN)’s rise in financing of the government, thereby, limiting private sector access to credit. Salami, in a communiqué no 114, said monetary data shows a sharp rise in the extent of CBN financing of the government deficit December 2016, adding that CBN has become a piggy bank in which over N1.5 trillion have been moved to service debt as at April, 2017 from N3 billion at the end 2016. “It is clear that the CBN has provided “piggy bank‟ services to the Federal Government”, he said. Highlights of CBN financing of the Federal Government since Dec. 2016 include CBN’s claims on Federal Government at N814 billion is twentyfold higher while the claims of Commercial Banks rose marginally by 0.4 per cent to N4.6 trillion; 30.0 per cent increase to N454bn in CBN‟s purchase of government T-Bills; 5 percent increase in FG’s overdrafts to N2.8 trillion. “To prevent the effect of continuous and massive injections of cash to fund the Federal Government showing up in sharply higher inflation and currency weakness, the Central Bank now applies ‘special auctions. The format of the ‘auctions’ recall the dark days of ‘stabilization securities. The effect of the auctions is to raise the ‘effective’ Cash Reserve Ratio (CRR) beyond the 22.5 Per cent sanctioned by the MPC. The adverse effect on extension of credit to the private sector is not difficult to understand”.
China, Nigeria trade value hits N2.3trn
The Chinese consulate in Nigeria has disclosed that trade value between the country and Nigeria has hit N2.3 trillion ($6.5 billion) in the first five months of 2017, an increase of 33 per cent, over the same period in 2016. Speaking at the 68th independence anniversary, the Consul General in Lagos, Mr Chao Xiaoliang, said “Recent years witnessed tangible progress in China Nigeria relations. China/Nigeria strategic partnership enjoyed comprehensive and rapid development. The positive chemistry between President Xi Jinping and President Buhari is heating up the exchanges between the two countries in various fields.