In response to the COVID-19 pandemic, Nigeria’s House of representatives has passed an ’emergency economic stimulus bill’ requiring the Federal Government to refund to firms 50% of the income tax paid on employee salaries.
However, the bill, which was introduced and passed during Tuesday’s plenary session, would need to be passed by the senate and sent to the president for assent to become law.
The bill seeks to protect employees and caution the economic implication of the pandemic for companies registered under the Companies and Allied Matters Act (CAMA) 2004. It also states that eligible companies would be those who do not retrench their staff from March 1 till December 31, 2020.
According to the bill, such employers shall during the period be “entitled to 50% income tax rebate on the total of the actual amount due or paid as pay as you earn (PAYE) tax under the personal income tax act cap C8 LFN 2004 (as amended)”.
The bill has provisions to suspend import duties on medical equipment and drugs required for the treatment and management of the COVID–19, for a period of three months, starting from the end of March.
In addition, it provides for deferment of all mortgage payments for a period of 180 days effective from March 1, 2020. The deferment is only applicable to residential mortgages obtained by individual contributors to the national housing fund.
In a statement, the Speaker, Femi Gbajabiamila said the bill is temporary and is meant to expire in December. He added that, “We can review the bill before the expiration date if, in the next few months, there is no need for it and we were able to beat the virus.”