Philip Clement, AbujaHenceforth, Nigerians will pay 7.5 per cent on Value Added Tax (VAT) as the president has finally assented to the 2019 Finance bill into law on Monday.The bill, which has six components included the proposed increase of VAT from 5 per cent to 7.5 per cent.On the verified twitter account of the president, Buhari said, “I am pleased to announce that this morning I signed into law the Finance Bill, 2019.”
He added, “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 and raise government revenues.”A breakdown of the Finance law 2019 by Daily Times showed that it is designed to 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 also made provisions for companies with an annual turnover of less than N25 million to be exempted from paying company income tax.
The federal government also raised the threshold from which stamp duty will be charged for online transactions from the current N1, 000 to N10, 000.
The minister said the government needs diverse sources of revenue to cater for the teeming population and ensure that the budget makes the necessary impact.
She stated this at the public presentation of the breakdown for the approved 2020 budget
“On the Finance bill, we’re expecting that before the week runs out, the Finance bill will be sent to the president for assent and our target is that the bill takes effect from January 2020.
“However with the passage of the Finance bill, PSC and the Inland Basin Act, significant revenue will be realised going forward which we will be using to fund our budget,” Ahmed had earlier stated.