President Muhammadu Buhari, on Monday, signed the Finance Bill, which, among others, seeks to increase the value-added tax (VAT) from five per cent to 7.5 per cent.
The president announced this move on his verified Twitter account today.
He said “I am pleased to announce that this morning I signed into law the Finance Bill, 2019.
“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.” the tweet reads.
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.
The bill will also reform the tax regime by amending several Acts, namely Petroleum Profit Tax Act (PPT), Custom and Excise Tax Act, Company Income Tax Act (CITA), Personal Income Tax Act, Value Added Tax Act, Stamp Duties Tax Act, and Capital Gains Act.
A statement was also released by Mr Buhari’s spokesperson, Femi Adesina, confirming the signing of the bill.