by Whitney Omoh
Nigeria’s President, Muhammadu Buhari, has signed the 2020 Finance Bill into law, approving 7.5% VAT increase. This development was confirmed in a statement by the Special Adviser to the President, Mr Femi Adesina.
According to him, this is sequel to its passage by the National Assembly and subsequent forwarding by the legislature to the President for assent.
While presenting the 2020 Appropriation Bill to the National Assembly, the President also presented the Finance Bill.
He stated that; “This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws. These objectives are; promoting fiscal equity by mitigating instances of regressive taxation; Reforming domestic tax laws to align with global best practices;
“Others are; Introducing tax incentives for investments in infrastructure and capital markets; Supporting Micro, Small and Medium-sized businesses in line with our Ease of Doing Business Reforms; and Raising Revenues for Government.
“The draft Finance Bill proposes an increase of the VAT rate from five per cent to 7.5 per cent, as such, the 2020 Appropriation Bill is based on this new VAT rate.”
According to Adesina, with the agreement, there would be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure.