By Isa Amodu
Following President Muhammadu Buhari’s assent to the 2019 finance bill into law, Nigerians are now to pay 7.5 per cent as Value Added Tax.
Buhari signed the bill into law in Abuja on Monday.
On the verified twitter account of the president, Buhari said “I am pleased to announce that this morning I signed into law the Finance Bill, 2019,”
He added that “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.”
GovenanceNews reports that the bill 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.
The bill also made provisions for companies with an annual turnover of less than N25 million to be exempted from paying company income tax.
The federal government also raised the threshold from which stamp duty will be charged for online transactions from the current N1,000 to N10,000.
The minister said the government needs diverse sources of revenue to cater for the teeming population and ensure that the budget makes the necessary impact.
The Bill is signed 27 days after the budget although it was submitted the same day.