By Shola Abayomi.
President Muhammadu Buhari on Monday signed the 2019 Finance Bill into law at the State House, Abuja.
The president, who made the disclosure on his official Twitter handle wrote: “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.”
The Finance 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.
It would be recalled that the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed had earlier announced a review of the tax policy for Small and medium-sized enterprises (SMEs) in the country.
The minister disclosed that as part of measures to improve the business climate in Nigeria, the Federal Government had exempted small-scale businesses with turnover less than N25m from being taxed.
She also noted that the government reduced the tax for medium size businesses from 30 per cent to 20 per cent, to enable them have more resources to plough back in their business.
Mrs Ahmed stated that the policy would be implemented when the Finance Bill is signed into law.
The Bill also stipulates an increase in the Value Added Tax (VAT) from 5 per cent to 7.5 per cent.