The renowned Professor of Economics, Paul Collier writes in Businessday on what the PIB gets right. The focus of the short article is on the balance between taxes and royalties under the PIB, with Collier suggesting that the greater emphasis on royalties is better as it provides fewer opportunities for companies to disguise taxable profits. It should be noted that the current draft of the PIB does not indicate the royalty regime at all, but leaves it for the Minister to determine by regulations. Prof. Collier’s comments are likely to be based on the last exposure drafts of the proposed royalty regime. Nevertheless the article is worth reading for an understanding of the dynamics surrounding the royalty/tax debates in Nigeria’s petroleum fiscal reform initiatives.
Mr. Pedro Van Meurs, an experienced consultant on petroleum matters has just released his commentary to the PIB 2012 which may be found here. Mr. Van Meurs was a consultant to the Inter-Agency Team which worked on a previous draft of the PIB between 2008-2010.