Worried by the likely ravaging effect of the dreaded Covid 19 disease, House of Representatives on Tuesday passed with the speed of light 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 Rep. Femi Gbajabiamila (Speaker), Rep. Ahmed Wase (Deputy Speaker), Rep. Alhassan Ado Garba (House Leader), Rep. Peter Akpatason (Deputy House Leader), Rep. Mohammed Tahir Monguno (Chief Whip), Rep. Nkiruka Onyeajocha (Deputy Chief Whip), Rep. Ndudi Godwin Elumelu (Minority Leader), Rep. Toby Okechukwu (Deputy Minority Leader), Rep. Gideon Gwani Lucas (Minority Whip) and Rep. Adesegun Adekoya Abdul Majid (Deputy Minority Whip).
Leading the debate on the general principles of the bill christened emergency stimulus bill 2020, the Speaker said the bill is expected to grant companies a rebate on Companies Income Tax to the value of 50% of PAYE deductions so long as these companies maintain their PAYE rolls from 1st March 2020 to 31st December 2020.
It 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 clarion call on Nigerians to begin to think outside the box on how to confront the unusual ailment that has constituted a major threat to the global economy and mankind.
He said the lawmakers were representatives of the people and must there hold sacrosanct the security and welfare of the people, adding that the bill will help curtail the likely effect of COVID-19.
He said even though the government has put measures in place and often act through the legislature, there is no better move to safeguard the people than the move by the lawmakers.
He said the bill will protect the jobs of Nigerians by ensuring that employers of labour keep their workforce and pay their emoluments as and when due, stressing that when this is done, such employers will be entitled to a refund of 50 percent of the PAYE of workers within the period.
He argued that as a result of the disease, it was natural for employers to want to retrench workers as part of their survival measures, pointing out that this was the time for 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.
“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 might 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 life caused by this Pandemic. Many of the goods that will qualify for these exemptions are already VAT exempt. 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 can not be provided for locally will qualify.”
The Speaker however said the bill was subject to review anytime especially when there are improvement in the economy as a result curtailing of the virus.
Rep Ado Doguwa said the bill was timely and intended to give a human face to employers of labour operating in the country within the period.
Doguwa said the Nigerian economy was bleeding, stressing that urgent measures must be put in place to provide soft landing for employers of labour in the country who will be worst hit by the impending economic recession.
He said the intentions was to give force of law to measures already being taken to ameliorate the hardship and impact of COVID-19.
