Reps pass emergency stimulus Bill to provide relief measures

Tony Akowe and Victor Oluwasegun

Worried by the likely ravaging effect of the dreaded COVID19 virus on the economy, House of Representatives on Tuesday passed a Bill to provide emergency relief measures for Nigerians in terms of tax waiver for companies for them to keep their workers within the period of the disease.

The bill, which passed through first, second and third reading within one hour on the floor of the House, seeks to provide for relief on corporate tax liability, suspension of import duty on selected goods and deferral of residential mortgage obligations to the Federal Mortgage Bank of Nigeria for a fixed term to protect jobs and alleviate the financial burden on citizens in response to the economic downturn occasioned by the outbreak of COVID-19 disease and for related matters.

The Bill is sponsored by Speaker Femi Gbajabiamila, Deputy Speaker Ahmed Wase, House Leader Alhassan Ado Garba, Deputy House Leader Peter Akpatason, Chief Whip Mohammed Tahir Monguno, Deputy Chief Whip Nkiruka Onyeajocha, Minority Leader Ndudi Godwin Elumelu, Deputy Minority Leader Toby Okechukwu, Minority Whip Gideon Gwani Lucas and Deputy Minority Whip Adesegun Adekoya Abdul Majid.

Leading the debate on the general principles of the Bill named Emergency Stimulus Bill 2020, the Speaker said it is expected to grant companies a rebate on Companies Income Tax to the value of 50 per cent of PAYE deductions “so long as these companies maintain their PAYE rolls from March 1, 2020 to December 31, 2020.”

The Bill also seeks to suspend import duties on medicines, medical equipment, personal protective equipment and other such medical materials as may become essential to managing and eradicating an outbreak of Covid 19 virus in Nigeria.

The Speaker said the Covid 19 disease was a call on Nigerians to think outside the box on how to confront the unusual ailment that had constituted a major threat to the global economy and mankind.

He said although the government has put measures in place and often acts through the legislature; there is no better move to safeguard the people than the move by the lawmakers.

Gbajabiamila said the bill will protect the jobs of Nigerians by ensuring that employers of labour keep their work force and pay their emoluments as and when due, stressing that when this is done, such employers will be entitled to a refund of 50 per cent of the PAYE of workers within the period.

He said that as a result of the disease, it was natural for employers to want to retrench as part of their survival measures, adding that this was the time for the government to make sacrifice for its people.

The Speaker said: “The emergence of the Covid 19 pandemic has had a devastating effect on global economies. Millions of people all over the world have lost their livelihood, and others have witnessed the rapid depreciation of their retirement benefits through the wipe out of stock market values. “

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“This Bill is how we try to keep as many people in their jobs by providing tax-based incentives for companies to keep people on the payroll for as long as possible even when faced with harsh commercial realities.

“As the benefits outlined in this Bill are available only to incorporated entities, we expect that the Bill will have a further long term benefit of helping to expand the tax base by encouraging incorporation and compliance.

“Individual contributors to the National Housing Fund, who have obtained Federal Mortgage Bank of Nigeria (FMBN) backed mortgages to purchase family homes will enjoy a moratorium on making mortgage payments till the end of the year.

“We do not have a robust system of health insurance in this country. A large scale breakout will put a strain on family finances. In a situation where the government cannot do direct cash transfers to those most in need, this ensures that we at least can keep from taking from those who may need it during these uncertain days.

“All over the world, shortage of test kits, personal protection equipment, medicines and other such have contributed to the loss of lives caused by this pandemic. Many of the goods that will qualify for these exemptions are already VAT exempted. Further removing import duties prioritises these goods and will spur import activity.

“The actual schedule of qualified goods will be determined by the Minister of Health so that only those emergency needs that cannot be provided for locally will qualify.”