Nike PopoolaVice-President Yemi Osinbajo has said the Federal Government cancelled the minimum tax for insurance sector to help the sector to grow. Before the Act was enacted, he said that insurance companies were only allowed to carry forward losses for four years, even when firms in other sectors of the economy could carry forward their losses indefinitely. The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, while speaking on the insurance sector tax reform, said it allowed the insurance companies to carry forward tax losses indefinitely similar to companies in other sectors of the economy. She said, it “Eliminates the specific minimum tax for insurance companies, and grants tax deductions for legitimate expenses on a time apportionment basis. It enables insurance companies to become competitive and better able to mobilise long-term funds for development.

Source: Punch February 02, 2020 23:37 UTC