OrderPaperToday– President Muhammadu Buhari has signed the Finance Bill passed by the National Assembly on November 21, 2019, into law.
Buhari had presented the bill alongside the 2020 Appropriation Bill to the legislature on October 8, 2019.
Included in the bill are amendments to seven bills which are: Petroleum Profit Tax Act (PPT), Customs and Excise Tax Act, Company Income Tax Act (CITA), Personal Income Tax Act, Value Added Tax Act, Stamp Duties Tax Act, and the Capital Gains Act.
The assent was disclosed by Buhari in a tweet on Monday.
According to him, the bill will “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.
“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 commended the leadership and members of the Ninth 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.”
Key highlights of the amendments are increment to the VAT from 5 per cent to 7.5 per cent, introduction of Withholding Tax (WHT) of 10 per cent on dividends paid out of the profits of companies involved in petroleum operations in Nigeria, companies without their Tax Identification Numbers will not operate corporate accounts in the country, among others.