The 2020 Appropriation Bill has been endorsed by President Muhammadu Buhari.
In a twitter message, the President said: “I am pleased to announce that this morning I signed into Law the Finance Bill, 2019”, the President tweeted.
The President said the Finance Bill would support the implementation of the 2020 Appropriation Bill.
“This is the first time, since the return of democracy in 1999, that a federal budget is being accompanied by the 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.
“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”, the message read.
Buhari explained that his administration 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 as well as raise government revenues”.
The import of assenting to the Finance Bill is that the Value Added Tax, VAT, in Nigeria has now been officially increased from the current 5 percent to 7.5 percent.
The law seeks 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.