President Muhammadu Buhari has signed the 2019 Finance Bill into law.
The law alongside the 2020 Budget is aimed at reforming Nigeria’s tax system to align with global best practices, support Micro, Small and Medium Enterprises(MSME) through the Ease of Doing Business initiative.
It also aims to raise government revenues, as well as incentivise investments in infrastructure and capital markets.
After signing the bill into law, Buhari said :“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.”
He thanked the leadership and members of the 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.”
Recall that the National Assembly passed the Finance Bill in November last year while the 2020 budget was passed in December 2019.
The finance law seeks to amend six tax provisions and make them more responsive to tax reform policies.
Meanwhile, there is an increase in Value Added Tax on specific goods and services from 5 percent to 7.5 percent; the law also affects changes in the tax provision of the Customs and Excise Tariff Act to encourage local manufacturers.
Other Acts captured include Petroleum Profit Tax Act; Company Income Tax Act; Personal Income Tax Act; Stamp Duties Tax Act and Capital Gains Act.