President Muhammadu Buhari has signed the 2019 finance bill into law.
It is expected that the law, alongside the 2020 Budget will aid in the reform of Nigeria’s tax system in line with global best practices as well as support MSMEs through the Ease of Doing Business initiative.
The President signed the bill on Monday.
The Finance law is also expected to increase government’s revenues, as well as incentivize investments in infrastructure and capital markets.
After signing the bill into law, Buhari said: “This is the first time, since the return of democracy in 1999, that a Federal Budget is being accompanied by passage of a Finance Bill specially designed to support its implementation and to create a truly enabling environment for business and investment by the private sector.”
He thanked the leadership and members of the National Assembly for the “hard work and support that have gone into the passage of the landmark Deep Offshore and Inland Basin PSC Amendment Bill, and the Finance Bill; both vital to the successful implementation of the 2020 Budget.”
Recall that the finance bill was passed in November by both chambers of the National Assembly while the 2020 budget was passed in December 2019.
The finance law seeks to amend six tax provisions and make them more responsive to tax reform policies.
Also, with the signing of the bill into law Value Added Tax (VAT) on specific goods and services has increased from 5 percent to 7.5 percent.