According to Reports reaching Oyogist.com, the Federal Executive Council of Nigeria has approved implementation of the #FinanceBill2020. The Bill would make certain reforms to 13 different pieces of legislation, including Tax laws, the Fiscal Responsibility Act and the Public Procurement Act.
Also, more tax incentives would be initiated through the Bill for Nigerian businesses & individuals. Oyogist.com also learnt that the bill has been formally presented to State governors today, during a National executive council meeting.
Presidency Nigeria While sharing on its official Twitter page,what would be the impact of the 2020 Finance Bill on the lives of Nigerians Wrote;
“The 2020 Finance Bill would Enhance;
1.Reduction in duties on tractors from 35 to 10 per cent
2. Reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent.
3. Reduction of levy on motor vehicles for the transportation of persons (cars) from 35 per cent to 5 per cent.
4. Exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND) – companies with less than N25m turnover are eligible.5. 50 per cent reduction in minimum tax; from 0.5% to 0.25% for gross turnover for financial years ending between Jan 1st, 2020 and Dec 31st, 2021.
6. Granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition (CACOVID).
7. Clarification that only compensation for loss of office up to N10million would be tax exempt. (Clarification that it is the employer’s obligation to account for tax on payments relating to compensation for loss of office.)
8. Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business.” Among others, it wrote.