House of Reps passes bill proposing VAT increase just like the Senate

Members of the House of Representatives on Thursday, November 28, passed the 2019 Finance Bill submitted by President Muhammadu Buhari after it passed its third reading.

The bill which introduced tax incentives for investment in infrastructure, capital markets and supports small businesses also amended six tax provisions to make them more responsive to tax reform policies.

It is expected that the 2019 Finance Bill will reform the current tax regime by amending seven acts namely: Petroleum Profit Tax Act, Custom and Excise Tax Act, Company Income Tax Act, Personal Income Tax Act, Value Added Tax Act, Stamp Duties Tax Act, and Capital Gains Act.

Channels Television reported that asides increasing the Value Added Tax on specific goods and services from 5 per cent to 7.5 per cent, the bill also amends the tax provision of the Customs and Excise Tariff Act to encourage local manufacturers.