President Muhammadu Buhari on Monday, signed the 2020 Finance Bill into law.
The presidential assent is sequel to its passage by the National Assembly and subsequent forwarding by the legislature to the President for assent.
With the assent of the bill into law, the 7.5 new Value Added Tax (VAT) regime is expected to kick off immediately as the 2020 budget is based on the new tax increase.
A statement signed by Mr. Femi Adesina special adviser to the president on media and publicity said the signing into law of the final bill will help government shore up its revenue base and help provide the need funds for the execution of key projects especially in the areas of health, education and critical infrastructure.
“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,” Adesina said in the statement.
Recall that President Buhari, while presenting the 2020 Appropriation Bill to the National Assembly, had also presented the Finance Bill and said: “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; 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.
Special Adviser to the President
(Media & Publicity)
January, 13, 2020