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FINANCE BILL: Buhari approves 7.5% VAT increase

Thompson Nsisongabasi

Jan 14, 2020

The President, Major General Muhammadu Buhari (retd.), on Monday, signed the 2020 Finance Bill into law.

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

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According to the presidential aide, this is sequel to its passage by the National Assembly and subsequent forwarding by the legislature to the President for assent.

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It would be recalled that the retired general, while presenting the 2020 Appropriation Bill to the National Assembly, had also presented the Finance Bill.

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He said, "This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws.

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"These objectives are; promoting fiscal equity by mitigating instances of regressive taxation; Reforming domestic tax laws to align with global best practices;

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"Others are; 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.

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"The draft Finance Bill proposes an increase of the VAT rate from five per cent to 7.5 per cent , as such, the 2020 Appropriation Bill is based on this new VAT rate," he said.

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

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(NAN)

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— Thompson Nsisongabasi

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