Nigerians To Pay 7.5 Percent Value Added Tax
The President, Muhammadu Buhari, on Monday, signed the 2020 Finance Bill into law.
President Buhari assented to the bill barely a month after its passage by the National Assembly and subsequent forwarding by the legislature to the President for assent.
A statement by the Special Adviser to the President on Media and Publicity, Femi Adesina explained that the Finance law 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.
“The draft Finance Bill proposes an increase of the VAT rate from five percent to 7.5 percent, as such, the 2020 Appropriation Bill is based on this new VAT rate,” he added.
With the assent, according to Adesina, there would be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure.