President Muhammadu Buhari on Monday signed the 2019 finance bill alongside the 2020 appropriation bill into law.
The President made this known in a series of tweets on his Twitter page earlier today.
The law alongside the 2020 Budget is aimed at reforming Nigeria’s tax system to align with global best practices, support MSMEs through the Ease of Doing Business initiative.
It also hopes to raise government revenues, as well as incentivize investments in infrastructure and capital markets.
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Both chambers of the National Assembly passed the finance bill in November 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.
The Acts also include;
Petroleum Profit Tax Act, Company Income Tax Act, Personal Income Tax Act, Stamp Duties Tax Act, and Capital Gains Act.
We introduced the Bill alongside the 2020 Budget, to:— Muhammadu Buhari (@MBuhari) January 13, 2020
-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.
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.— Muhammadu Buhari (@MBuhari) January 13, 2020