Finance Bill, 2019 passes Second Reading at the Senate
Finance Bill, 2019 passes Second Reading at the Senate
The Finance Bill, 2019 (“Finance Bill” or “the Bill”) submitted by His Excellency, President Muhammadu Buhari, GCFR, to the joint session of the National Assembly on 14 October 2019 passed its Second Reading at the Senate yesterday, Wednesday, 6 November 2019.
The objectives of the Bill, as outlined by the President, are to:
- promote fiscal equity;
- reform domestic tax laws;
- introduce tax incentives for investments in infrastructure and capital markets;
- support small businesses; and
- raise revenues for the Government.
The Bill contains vast changes to the Companies Income Tax Act, Value Added Tax (VAT) Act, Petroleum Profits Tax Act (PPTA), Personal Income Tax Act, Capital Gains Tax Act (CGTA), Customs and Excise Tariff Etc. (Consolidation) Act and Stamp Duties Act. It is expected that the Bill will be enacted by the National Assembly at the same time as the passage of the 2020 National Budget and the 2020 Appropriation Act. The initiative is laudable and the proposed modifications to the fiscal rules around taxation are clearly aimed at creating an enabling business environment and alleviating the tax burden for small and medium enterprises. This is expected to encourage growth and investment by that sector of the economy.
Click to download and read more on some proposed changes to the tax laws by the Bill.
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