7.5% VAT becomes effective in Nigeria as Buhari Signs Finance Bill Into Law
7.5% VAT becomes effective in Nigeria as Buhari Signs Finance Bill
Nigeria has successfully increased her Value Added Tax (VAT) rate from 5% to 7.5% effective from today, January 13th, 2020 as President Muhmmadu Buhari assented the 2019 Finance Bill.
The VAT increase is a critical part of the now 2019 Finance law which was a Executive Bill. In a post on Twitter, Buhari said, “I am pleased to announce that this morning I signed into law the Finance Bill, 2019.”
Nigeria’s President, Muhammadu Buhari, on Monday signed the country’s finance bill into law.
In a post on Twitter, Buhari said, “I am pleased to announce that this morning I signed into law the Finance Bill, 2019.
“This is the first time since the return of democracy in 1999 that a federal budget is being accompanied by the passage of a Finance Bill specially designed to support its implementation, and to create a truly enabling environment for business and investment by the private sector.
“I thank the leadership and members of the National Assembly for the hard work and support that have gone into the passage of the landmark Deep Offshore and Inland Basin PSC Amendment Bill, and the Finance Bill; both vital to the successful implementation of the 2020 Budget.”
Nigeria operated one of the lowest VAT rates in the world. But the major question that bug tax administration in Nigeria border on the utilization of tax proceeds by the government.