Nigeria News: VAT Now 7.5% As President Buhari Signs 2019 Finance Bill Into Law, Nigeria’s President, Buhari has signed the proposed increase in the rate
of value-added tax from the present 5% to 7.5% into law.
The 2019 finance bill signed by President Buhari alongside with the budget was
submitted to the National Assembly on Monday.
“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,
Company Income Tax Act, Personal Income Tax Act, Value Added Tax, Stamp
Duties Act and the Capital Gains Tax.
The bill also made provisions for companies with an annual turnover of less
than N25 million to be exempted from paying company income tax.
The federal government also raised the threshold from which stamp duty
will be charged for online transactions from the current N1,000 to N10,000.