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Financial Bill: No Tax Card, No Bank Account from January 2020

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Evidence of tax payment will be one of the conditions for operating a bank account from January 2020, according to the Financial bill passed by the National Assembly.

The bill, submitted to the lawmakers alongside Budget 2020 by President Muhammadu Buhari, is designed to improve financial operations of the country and streamline the tax regime.

According to a section of the Bill, banks will therefore require anybody opening an account to provide his\her Tax Identification Number (TIN)

It also stated that those who already have accounts with banks will also be required to provide their TIN.

The intention is to make sure that more people are captured into the tax net, Government said.

According to the Joint Tax Board, the tax identification number (TIN) is a unique identifier for an individual or a company for tax remittance.

The TIN is prepared by the tax office and issued for proper identification and verification.

According to the bill, application for TIN would be free, and the generation process would not exceed 48 hours after a request is submitted.

Also, in the bill, emails will be accepted by the tax authorities as a formal channel of correspondence with taxpayers.

When signed into law, the bill will remove the tax exemption on withdrawals from pension schemes except the prescribed conditions are met.

The bill will also strategically “promote fiscal equity by mitigating instances of regressive taxation; reform domestic tax laws to align with global best practices; introduce tax incentives for investments in infrastructure and capital markets; support small businesses in line with the ongoing Ease of Doing Business Reforms; and raise revenues for the Government by various fiscal measures.”

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