The Petroleum Profit Tax Act has been requested to be amended to include the same clauses as Section 104 of the Petroleum Industry Act (PIA) by the Lagos Chamber of Commerce and Industry (LCCI).
Additionally, gas flare fees and costs are considered penalties and are not tax deductible as such. Since 2000, oil and gas companies in Nigeria have decreased flaring by 70% while nearly doubling total gas production and quadrupling commercialized volumes.
According to the Minister of Finance, Budget, and National Planning’s presentation of the 2023 Budget, “With the plan to remove some large enterprises from the Pioneer Status incentives, the Government can save about N6 trillion in tax expenditure (waivers, exemptions, and incentives granted by the government).
The chamber suggests a retention of the Tertiary Education Tax (TET) rate at 2.5%, since it was just recently increased from 2% to 2.5%. Nigeria’s corporate tax rate at the suggested rate of 3% would rise to about 36% which is one of the highest rates in the world.