The Director-General, Nigerian Insurers Association (NIA) Mrs. Yetunde Ilori has commended President Muhammadu Buhari for the speedy assent to the Finance Act 2020, describing the move as a welcome development which will usher in a new lease of life for insurance companies.
A statement by the association’s Head, Corporate Communications, Human Resources & Administration, Davis Iyasere, noted that Ilori also commended the Honorable Minister of Finance, Budget and National Planning, Mrs. Shamsuna Ahmed and her ministry for taking special interest in matters affecting the insurance industry, noting that her desire to promote the business of Insurance will continue to be appreciated. Understandably too as Insurance is the backbone and livewire of any economy.
According to her, the various amendments brought about by the provisions of the Finance Act 2020 has lifted a huge tax burden off the insurance companies which had endured years of excruciating tax burden under CITA 2007 which did not place insurance companies at a level playing field with companies in other sectors of the Nigerian economy.
Giving specific details, she stated that Sections 5 and 6 of the Finance Act, 2020 repeals the punitive and outdated provisions of Section 16 of the Companies Income Tax Act on the taxation of insurance companies., thus resolving significantly tax issues identified on Insurance industry taxation.