Buhari seeks amendment to Finance Act

President Muhammadu Buhari, on Tuesday, sent an Executive Bill to the Senate that seeks to amend aspects of the recently assented Finance Act, 2019.

President of the Senate, Ahmad Lawan, read Buhari’s letter on the floor of the Senate.

According to Buhari, the Bill seeks to make clear that the effective date of the implementation of the 7.5 per cent increase in the Value Added Tax is 1st February, 2020.

He added that animal feeds are to be included in the list of Basic Food items that were exempted from the VAT charges.

The Bill, he said, also seeks to amend aspects of the tax holiday incentive for agriculture.

Buhari’s letter titled: “Transmission of the Finance Act, 2019 (Amendment) Bill for consideration and passage into law” reads in part:

“Pursuant to Sections 58 and 59 of the Constitution of the Federal Republic of Nigeria 1999 (as amended), I formally request that the Finance Act, 2019 (Amendment) Bill, be considered by the Senate, for passage into law.

“This Bill seeks to amend the Finance Act, 2019, as recently passed by the National Assembly, by clarifying.

“That the administrative effective date for the increase in Value Added Tax from 5% to 7.5% is the 1st of February 2020.

“That ‘Animal Feeds’ are included in the list of Basic Food items that are exempt from Value Added Tax; and

“Aspects of the tax holiday incentive for agriculture, by targeting this incentive to small and medium sized companies that invest in primary crop, livestock, forestry and fishing agricultural production.

“This incentive is also to be administered by the Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act.

“While I trust that this Bill will be favourably considered for passage into law by the National Assembly, so as to support the implementation of the 2020 Federal Budget.”