Nigerians will now pay 7.5 % VAT and not 5%

 

President Muhammadu Buhari  has signed into law the 2020 Finance Bill, bringing into effect the 7.5% VAT from 5%.

A statement issued by his special adviser on media and publicity Femi Adesina, With the assent, there will be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure.

The president's assent on monday at the state house, was weeks after the National Assembly passage  and subsequently forwarded to the President.

President Buhari, while presenting the 2020 Appropriation Bill to the National Assembly, had also presented the Finance Bill and noting that the Bill has five strategic objectives, in terms of achieving incremental, but necessary changes to Nigeria's fiscal laws.

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

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 the new VAT rate.