Buhari assents to Financial Bill, approves 7.5% VAT increment

Buhari

 

  • LCCI frets over impact on businesses, end users

 

 

Anule Emmanuel

Abuja

 

P

resident Muhammadu Buhari has signed the 2020 Finance Bill into law.

With the signing of bill into law, the President has approved the increment of the Value Added Tax (VAT) rate from five per cent to 7.5%.

Special Adviser on Media and Publicity to the President, Mr. Femi Adesina, in a statement yesterday, confirmed the development.

 

“With the assent, there will be more revenue to finance key government projects, especially in the areas of health, education and critical infrastructure,” Adesina said.

 

The new law is targeted at reforming the Nigerian tax system to align with world best practices and supporting Micro, Small and Medium Enterprises through the ease of doing business initiative.

It is also expected to improve revenue for the

government as well as incentivise investments in infrastructure and capital markets.

 

President Buhari had, while presenting the 2020 Appropriation Bill to the National Assembly, also presented the Finance Bill.

Buhari had said: “This Finance Bill 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 per cent to 7.5%, as such, the 2020 Appropriation Bill is based on this new VAT rate,” he added.

 

Meanwhile, the Lagos Chamber of Commerce and Industry (LCCI) has expressed concern on the impact the Value Added Tax (VAT) increment would have on businesses and end users from the cost pressure perspective, due to the high cost in operating environment.

 

Yusuf also expressed concern over the provision on minimum tax, saying that it was inappropriate to compel loss-making firms to pay tax, no matter how little.

This, the Director-General explained, amounted to erosion of capital for such businesses.

 

He, however, commended the Federal Government on some of the expected positive impacts of the finance bill signed into law by President Buhari.

 

Its Director-General, Mr. Muda Yusuf made the commendation in a statement made available to newsmen yesterday in Lagos.

 

Yusuf said that a number of favourable provisions for small businesses were reflected in the finance bill, now signed into law.

 

He said that the impact on government revenue would be positive, especially for states and local governments, as their fiscal position would be enhanced.

 

His words: “The finance bill has a number of favourable provisions for small businesses and this is an aspect to commend. However, the VAT increment would impact adversely on businesses from cost pressures perspective.

“Margins would be affected, depending on the extent to which additional costs could be passed to consumers.

 

“We worry that we are operating in a high cost environment and also have the worry about the provision on minimum tax which we had argued against this provision.

 

“It is inappropriate to compel loss-making firms to pay tax, no matter how little. This amounts to erosion of capital,” he said.

 

 

Related posts

9 Thoughts to “Buhari assents to Financial Bill, approves 7.5% VAT increment”

  1. Hey, you used to write great, but the last few posts have been kinda boring… I miss your super writings. Past several posts are just a little bit out of track! come on!

  2. Buy ketrel online wholesale, ketrel cheaper alternative

    Throughout long years of our practice we have gathered unmatched experience in pharmacy!

    [url=http://bieberclub.net/view/go/1202dbd0/retin-a][b]Ketrel ! SAFE AND SECURE ORDERING! Enter Here![/b][/url]

    We are ready to provide you with all the medications you need to stay healthy and happy!

    [b]What happens if you take pills on an empty stomach?[/b] Some medicines need to be taken “before food” or “on an empty stomach “. This is because food and some drinks can affect the way these medicines work. For example, taking some medicines at the same time as eating may prevent your stomach and intestines absorbing the medicine, making it less effective.
    [b]Do you get benefits working at Walmart?[/b] Associates can contribute to their 401(k) starting on their first day with the company. Walmart provides up to a 6% match after one year on the job. The Associate Discount Center provides exclusive discounts on travel, cell phone services, entertainment and other goods and services not available in Walmart stores.
    [b]Does Walmart give health insurance?[/b] In addition to its standard health insurance benefits, Walmart covers 100 percent of the cost of certain types of major surgery, like transplants, at a top facility. The group OUR Walmart, which prods the company to improve wages and benefits, alerted The New York Times to the changes in coverage.
    [b]Can a doctor write a prescription for a friend?[/b] Under federal law, physicians are not specifically prohibited from self-prescribing or prescribing for friends and family. According the Opinion 8.19 of the AMA Code of Medical Ethics, “physicians generally should not treat themselves or members of their immediate families.”
    [b]What is Retinization?[/b] Retinization is the adjustment period in which the skin becomes acclimated with adapalene, the retinoid in Differin Gel. During this time skin may become red and irritated. Retinization typically begins to subside around week 4 of daily Differin Gel treatment.
    The couple dated from 2010 to 2012 and sadly suffered two miscarriages together – something Kelly referenced during her interview with the magazine The ad campaign from Priorities USA will begin appearing on television in Wisconsin next month, and in Florida, Pennsylvania and Michigan in March. It’s official, Akon has his own city in Senegal.

  3. I truly appreciate this article post.Much thanks again. Cool.

  4. Amazing! Its genuinely amazing post, I have got much clear idea concerning from this post.

  5. Your on line casino game choice is endless.

  6. This is a topic that’s near to mmy heart… Take care!
    Exactly wnere are yohr contact detaills though?

  7. Continue writing excellent content articles!

  8. RobertSergo

    Aumento de la masa muscular y descenso de la grasa corporal
    [url=http://uausite.com/cialis-sin-receta-mexico.html]cialis sin receta mexico[/url]: Cuautitlan
    [url=https://pharm1st.com/venta-generic-viagra/]Donde Comprar Generic Viagra Sin Receta en Madrid[/url] – 2,05 eu
    [url=https://pharm1st.com/venta-viagra-soft/]100 mg en Farmacia[/url], pastillas
    Cuando un hombre sufre este problema, independientemente de cual sea el origen o las causas que lo han desencadenado, suele sufrir un golpe muy fuerte en la parte psicologica.

  9. Hi there! I know this is somewhat off topic but
    I was wondering which blog platform are you using for this site?
    I’m getting tired of WordPress because I’ve had problems wiuth
    hackers and I’m looking at options for another platform.
    I would be great if you could point me in the direction of a good
    platform.

Leave a Comment