President Muhammadu Buhari on Monday signed the 2019 Finance Bill, which increased the rate of Value Added Tax (VAT) from the present 5% to 7.5%, into law.
The bill was submitted to the National Assembly alongside the 2020 budget, which was signed into law on December 17, 2019.
“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,” Buhari tweeted on Monday.
The new Finance Law amends 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 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 and raised the threshold from which stamp duty will be charged for online transactions from the current N1,000 to N10,000.
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