President Muhammadu Buhari’s government on Thursday morning gave further explanation of what Nigerians should expect from the 2020 Finance Bill.
The bill introduces a few tax and fiscal incentives aimed at empowering Nigerians, and further cushions the effects of the current economic and financial difficulties faced by citizens.
This online medium will be recalled earlier on Wednesday, when the Minister of Finance, Zainab Ahmed, announced after the bill had been approved by the Federal Executive Council (FEC) that there would be no rise in taxes and VAT.
Additionally, the presidency in a series of tweets from the federal government’s official Twitter account noted that the 2020 Finance Bill, which will support the implementation of the 2021 Budget.
Specifically, it gave some highlights of the bill to include:
1. Reduction in import duties/levy on tractors, and on motor vehicles for the transportation of goods and persons.
2. Exemption of small companies (with less than N25m turnover) from payment of education tax (TETFUND).
3. 50% reduction in minimum tax for companies; from 0.5% to 0.25% of gross turnover, for financial years ending between January 1st, 2020 and December 31st, 2021.
4. Formal establishment of a Crisis Intervention Fund for Nigeria, through an Act of the National Assembly.