The Finance Bill signed into law by Muhammadu Buhari on Monday came with five strategic objectives to deepen the economy by growing private sector investment.
The new law is expected to drive the 2020 budget which had been signed into law by Mr President.
A statement issued by the presidency revealed that “This Finance Bill has five strategic objectives, in terms of achieving incremental, but necessary, changes to our fiscal laws.
“These objectives are; promoting fiscal equity by mitigating instances of regressive taxation; reforming domestic tax laws to align with global best practices;
The presidency added that “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.
“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,” the Presidential statement averred.
