President Muhammadu Buhari has signed the Finance Bill, 2019, into law.
The President introduced the bill in October 2019 when he submitted the 2020 Budget proposal before a joint session of the National Assembly.
In a series of tweets via his verified Twitter handle Monday afternoon, the President said the bill would reform Nigeria’s tax laws to align with global best practices; Support MSMEs in line with our Ease of Doing Business Reforms; Incentivize investments in infrastructure and capital markets; and Raise Government revenues.
“I am pleased to announce that this morning I signed into Law the Finance Bill, 2019,” he tweeted.
We introduced the Bill alongside the 2020 Budget, to:
-Reform Nigeria’s tax laws to align with global best practices;
-Support MSMEs in line with our Ease of Doing Business Reforms;
-Incentivize investments in infrastructure and capital markets;
-Raise Government revenues.
— Muhammadu Buhari (@MBuhari) January 13, 2020
“This is the first time, since the return of democracy in 1999, that a Federal Budget is being accompanied by passage of a Finance Bill specially designed to support its implementation, and to create a truly enabling environment for business and investment by the private sector.
“I thank the leadership and members of the Ninth National Assembly for the hard work and support that have gone into the passage of the landmark Deep Offshore and Inland Basin PSC Amendment Bill, and the Finance Bill; both vital to the successful implementation of the 2020 Budget.”
The Finance Bill proposed an increase in the rate of value-added tax (VAT) from the present 5% to 7.5%.
It also seeks to amend the Petroleum Profit Tax Act, Customs and Excise Tariff Act, Company Income Tax Act, Personal Income Tax Act, Value Added Tax, Stamp Duties Act and the Capital Gains Tax.
The bill made provisions for companies with an annual turnover of less than N25 million to be exempted from paying company income tax.