Read how Adeosun revoked Okonjo-Iweala’s policy on witholding tax

Minister of finance, Mrs Kemi Adeosun has revoked the amendment reducing witholding tax for construction related activities. The regulation was amended by the former minister of finance and coordinating minister of the economy, Dr Ngozi Okonjo-Iweala in 2014. Okonjo-Iweala had amended the Companies Income Tax in order to reduce the withholding tax rate applicable to payments in respect of all aspects of building, construction, and related activities excluding survey, design and deliveries from five per cent to 2.5 per cent. The move was seen then as a incentive by the Goodluck Jonathan government to reduce the burden of construction companies in Nigeria. According to Leadership newspaper, the policy became law into on Thursday, January 1, 2015 and was gazetted by the then government. But Mrs Adeosun reverted the policy to five per cent based on recommendation from the Federal Inland Revenue Service (FIRS). The 2.5 per cent will however continue to be effective until the regulations...

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