The Finance Bill 2021, passed on Wednesday by the Senate, has made the possession of a Tax Identification Number imperative for individuals to open new bank accounts.
The Senate passed the bill a day after President Muhammadu Buhari transmitted the legislation to the upper chamber of the National Assembly.
The Act also mandates the country’s banks to demand TIN from current customers as a condition for them to continue to retain and operate their accounts.
“Banks will be required to request for Tax Identification Number before opening bank accounts for individuals, while existing account holders must provide their TIN to continue operating their accounts,” the Leader of the Senate, Yahaya Abdullahi, said while commenting on the Act.
According to Abdullahi, the bill, in addition, made electronic mails as the only channel that tax authorities would accept as a formal means of correspondence with taxpayers;
The Act is aimed at supporting the implementation of Nigeria’s 2022 budget through several reforms it introduced to the country’s taxation, customs, excise, fiscal and other legislations.
President Buhari had explained that the bill provides for enhanced Domestic Revenue Mobilization efforts to increase tax and non-tax revenues. It will also ensure Tax Administration and Legislative Drafting Reforms, particularly to support the ongoing automation reforms by the Federal Inland Revenue Service.
In his lead debate, Senate Leader, Yahaya Abdullahi (APC, Kebbi) said the finance bill seeks to amend seven different tax laws.
According to him, the amendment would promote fiscal equity, reform domestic tax laws to align with global best practices, introduce tax incentives for investments in infrastructure and capital markets, support MSMEs, and raise revenues for the government.
