BEVERLY HILLS, November 21, (THEWILL) – The Senate Thursday passed the Finance Bill presented to it by President Muhammadu Buhari to raise the country’s Value Added Tax (VAT) from 5 to 7.5 percent.
The bill has five strategic objectives of promoting fiscal equity, reforming domestic tax laws and raising revenue. The Bill is entitled,” A Bill for an Act to make for incremental changes to Nigeria Tax and Fiscal Law and for Other Related Matters therewith, 2019(SB 140).
Fifty-six amendments were done to different existing Acts which include: Company Tax; Petroleum Profit Tax; Capital Gains Tax; Stamp Duty Tax; Personal Income tax and Customs and Excise Duty.
According to the Bill, a large chunk of the funds realized from the taxation would go the states and local governments while fifteen percent will go the Federal Government.
The Finance Bill was read the third time and passed after the consideration of the report of the Chairman, Senate Committee on Finance, Senator Solomon Olamilekan Adeola, All Progressives Congress, APC, Lagos West.
President Muhammadu Buhari will have to sign the bill for it to become law.
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