The Nigerian Senate, on Thursday, passed the Finance Bill 2019, which increased the rate of Value Added Tax from five per cent to 7.5 per cent and equally streamlined the nation’s tax regime.
The passage of the Bill followed the presentation and consideration of the report of the Senator Solomon Adeola-led Senate Committee on Finance on the Finance Bill 2019.
In his comment after the passage of the Bill, the Senate President, Ahmad Lawan, said the amendment is meant to generate revenue to fund the 2020 Budget.
Lawan said: “We amended seven Acts largely to ensure that we streamline the tax system in Nigeria and ensure that we get revenues for government to provide services and infrastructure to the citizens of this country.
“What we have done is very significant because this is to ensure that we not only have sources of funding but credible and reliable sources of funding for the 2020 Appropriation but also for subsequent activities of government.
“The revenue generating agencies will have to sit up. The National Assembly, particularly the Senate, will be mounting a lot of oversight. If they have targets, we must ensure they meet the targets.
“I believe what we have done is not to put taxes or burden on the ordinary people. What we have done is to create more revenue.”
The seven Bills that were amended included: 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.
Senate President Ahmad Lawan urged revenue generating agencies to sit up, and ensure they do their work with patriotism.
The Finance Bill was presented alongside the 2020 Appropriation Bill to the National Assembly by President Muhammadu Buhari on October 8, 2019.
