President Muhammadu Buhari has officially sent in a request to the senate praying the amendment of the 2019 financial act.
The letter which is seeking that the administrative effective date for the increase in Value Added Tax from 5 per cent to 7.5 per cent is the 1st of February 2020 was read on the floor of the senate on Tuesday by Ahmed Lawan.
“Pursuant to Sections 58 and 59 of Constitution of the Federal Republic of Nigeria1 999 (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 per cent to 7.5 per cent 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 Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act.
“While I trust that this Bil will be favourably considered for passage into law by the National Assembly so as to support the implementation of the 2020 Federal Budget. Please accept, Distinguished Senate President, the assurances of my highest consideration.”