The President of the Federal Republic of Nigeria, President Muhammadu Buhari, recently presented the Nigerian Tax and Fiscal Law (Amendment) Bill, 2019 (the Finance Bill) to the National Assembly for consideration and passage into law. The Finance Bill has been passed by the Senate and is expected to be considered by the House of Representatives, after which it is likely to receive presidential assent. The Finance Bill, by proposing various amendments to the Companies Income Tax Act (CITA), Value Added Tax Act (VAT Act), Petroleum Profit Tax Act (PPT Act), Stamp Duties Act, Personal Income Tax Act (PITA), Capital Gains Tax Act and Customs, Excise Tariff, Etc. (Consolidation) Act, seeks to achieve the following objectives:
(a) Promote fiscal equity by mitigating instances of regressive taxation;
(b) Reform domestic tax laws to align with global best practices;
(c) Introduce tax incentives for investments in infrastructure and capital markets;
(d) Support small businesses in line with the ongoing ease of doing business reforms; and
(e) Raise revenue for government.
This article provides an analysis of key changes introduced by the Finance Bill in the laws highlighted above and the potential impact of the Finance Bill on Nigerian businesses. The article will also provide some recommendations on the next steps particularly with respect to the implementa-tion of the Finance Bill.
Potential Changes in Law Pursuant to The Provisions of The Finance Bill
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Previously published December 2019
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.