President Muhammadu Buhari on Monday January 13, signed the finance bill which will reform Nigeria’s tax system to align with global best practices, support MSMEs through the Ease of Doing Business initiative, into law.
The finance bill which was passed in November 2019 by both chambers of the National Assembly, is expected to amend six tax provisions and make them more responsive to tax reform policies and also raise government revenues as well as incentivize investments in infrastructure and capital markets.
Speaking after signing the bill into law, President Buhari said;
“This is the first time, since the return of democracy in 1999, that a Federal Budget is being accompanied by 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 President also thanked 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 new law which will affect changes in the tax provision of the Customs and Excise Tariff Act to encourage local manufacturers, captured an increase in Value Added Tax on specific goods and services from 5 percent to 7.5 percent.