President Buhari Writes National Assembly On Amendments To New Finance Act

President Muhammadu Buhari has sent an executive bill to the National Assembly seeking the amendment to the recently passed Finance Act 2019.

The President’s letter was read during Tuesday’s plenary by Speaker, Femi Gbajabiamila and Senate President Ahmad Lawan at the House of Reps and Senate chambers respectively on Tuesday.

Among other things, the President is requesting amendments to indicate that the annual fees payable on basic good items are different from Valued Added Tax.

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.

Additionally, the amendment seeks to note that animal feeds are to be included in the list of Basic Food items that were exempted from the VAT charges and amend aspects of the tax holiday incentive for agriculture as well.

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.”