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Buhari Wants New Finance Act Ammended

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Ganiyat Ganiyu

President Muhammadu Buhari on Tuesday wrote to the House of Representatives to seek amendments to the new Finance Act.

The Finance Act was passed by the National Assembly in January 2020.

Speaker of the House, Femi Gbajabiamila read Buhari’s letter at the plenary on Tuesday.

In the letter, the president asked that the that the Finance Act which was signed in January 2020 should indicate commencement date as February 1, 2020, as announced by Zainab Ahmed, the minister of finance, budget and national planning.

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.

The President’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;

“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.”

Buhari had assented to the finance bill in January saying the bill was aimed at reforming Nigeria’s tax laws

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