Nigeria: Proposed tax to finance healthcare fund
The tax to fund the hospital development objectives would be imposed on certain industry sectors.
Tax to fund the hospital development objectives
Pending legislation—the “Tertiary Hospitals Development Tax (THDT) Fund Bill, 2021”—would establish a hospital development fund that would be used to facilitate the rehabilitation, restoration, and consolidation of certain healthcare goals in Nigeria.
The tax to fund the hospital development objectives would be imposed on certain industry sectors, according to the following tax rates:
- 1% of petroleum companies’ tax paid on total barrels of crude oil produced yearly
- 1% of mobile phone service providers tax paid on airtime and data sold yearly
- 1% of beverages and breweries companies’ tax paid on profit yearly declared
- 1% of cement companies’ tax paid on profit yearly declared
- 1% of paint and chemical manufacturing companies’ tax paid on profit yearly declared
- 1% of tobacco companies’ tax paid on profit yearly declared
Based on the legislation, the Federal Inland Revenue Service would be assigned the assessment and collection of this tax, after which the taxes collected would have to be remitted into the fund. The assessed tax liability would be payable within 90 days after FIRS’ assessment.
Read a November 2021 report [PDF 605 KB] prepared by the KPMG member firm in Nigeria
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