NEW VAT REGIME TO COMMENCE FEBRUARY
Zainab Ahmed, Nigeria’s Minister of Finance
Finance Minister
The passage of the Finance Act, 2019 and Presidential assent on the 13th day of January, 2020, is described by financial experts as a significant milestone for Nigeria taxation system. This marks a return to an era of active fiscal supervision tailored towards stimulating the economy and creating an enabling environment for sustainable development.
The passage of the Finance Act introduces changes to Companies Income Tax Act, Value Added Tax Act, Petroleum Profits Tax Act, Personal Income Tax Act, Capital Gains Tax Act, Customs and Excise Tariff Act and Stamp Duties Act.
The amendments made by the Finance Act are intended to raise necessary revenue required to make funds available for public expenditure, support sustainable increase in public revenue and ensure that tax law provisions are consistent with the national tax policy objectives of the Federal Government of Nigeria.
Nigeria’s Minister of Finance, Zainab Ahmed announced that implementation of the 7.5% value added tax (VAT) rate under the new Finance Act will commence on 1 February 2020.
