The President, Muhammadu Buhari, has on Tuesday urged the National Assembly (NASS) to pass the 2020 finance bill to reduce import duties and levies of buses, tractors, and other motor vehicles.
The bill approved by the Federal Executive Council (FEC) in November, aims to improve the country’s tax laws and reduce some taxes especially for small businesses in addition to those already cut in the 2019 finance bill.
The Finance Bill 2020 further seeks to support the implementation of the 2021 Budget by proposing key reforms to specific taxation, customs, excise, fiscal and other laws.
This was noted in the president’s letter to NASS. He noted that the bill will prioritise job creation, economic growth socio-economic development, domestic revenue mobilisation, as well as foster closer coordination with monetary and trade policies.
He adds, “The Finance Bill 2020 seeks to support the implementation of the 2021 Budget by proposing key reforms to specific taxation, customs, excise, fiscal and other laws.”
According to the president, the bill will adopt appropriate counter-cyclical fiscal policies to respond to the economic and revenue challenges precipitated by the decline in international oil prices, as well as the impact of the COVID-19 pandemic on the Nigerian economy.
As noted in his, letter, “Provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two (2) consecutive years of assessment, as well as reforming the commencement and cessation rules for small businesses.”
