President Muhammadu Buhari has signed the 2019 finance bill into law in Abuja on Monday.
The import is that the Value Added Tax (VAT) in Nigeria is now officially 7.5 percent from 5 percent.
The bill was submitted to the national assembly alongside the budget but the bill signing is coming 27 days after the 2020 budget was signed into law on December 17.
“I am pleased to announce that this morning I signed into law the Finance Bill, 2019,” a tweet on the president’s Twitter account read.
“We introduced the bill alongside the 2020 budget, to 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.”
The law seeks to amend the Petroleum Profit Tax Act, Customs and Excise Tariff Act, Value Added Tax, Stamp Duties Act and the Capital Gains Tax.