A. OVERVIEW
President Muhammadu Buhari signed the Finance Act 2020 into law
on December 31, 2020. The new legislation followed hot on the heels
of the Finance Act 2019
1 which amended several tax
statutes. The Finance Act 2020 was enacted in furtherance of the
Federal Government s progressive reform of the business climate
in Nigeria, and the need to constantly restructure the tax system
to align and conform same with international best practices, and
make it respond effectively to the changing socio-economic
landscape.
Specifically, the Finance Act 2020 amended fourteen (14)
principal tax and tax-related legislation. The thrust of the
legislation includes boosting government revenue, preventing base
erosion, streamlining areas of regulatory conflict and clarifying
Vanguard News
FINANCE ACT 2020: Key changes and implications
On
President Muhammed Buhari, on 31 December 2020, signed the Finance Act 2020 (FA20) alongside the 2021 Appropriation Act into law. This reaffirms the Federal Government of Nigeria’s (FGN) commitment to enact fiscal policy annually, alongside the passage of the annual budget into law and aligns with global best practice.
The Act, which took effect on January 01, 2021, amended the provisions of 14 tax and fiscal related legislation, namely:
Capital Gains Tax Act (CGTA) Companies Income Tax Act (CITA) Industrial Development (Income Tax Relief) Act (IDITRA) Personal Income Tax Act (PITA) Tertiary Education Trust Fund (Establishment etc.) Act Customs and Excise Tariff, etc. [Consolidation] Act (CETA) Value Added Tax Act (VATA) Stamp Duties Act (SDA) Federal Inland Revenue Service (Establishment) Act (FIRSEA) Nigeria Export Processing Zones Act (NEPZA) Oil and Gas Export Free Zone Act (OGEFZA)
To print this article, all you need is to be registered or login on Mondaq.com.
On 31 December 2020, the President signed the Finance Bill, 2020
(now Finance Act, 2020) into law, alongside the 2021 Appropriation
Act. Indeed, the introduction of the Finance Act, 2020 (FA 2020) at
the beginning of fiscal year 2021 is a step in the right direction.
One can come to a conclusion that the Nigerian government is making
conscious efforts to align its local laws with global best
practices, promote fiscal equity, improve the ease of doing
business, provide support for small businesses and cultivate a
suitable environment for investment in infrastructure. The effort
ON THE GO
ABCON: 26 BDC operators arrested over ‘money laundering, terrorism financing’ The Association of Bureau De Change Operators of Nigeria (ABCON) says 26 members have been arrested by security operatives, over alleged unlawful foreign exchange (FX) transactions.Advertisement Aminu Gwadabe, president of.
Makinde: For blocking governance loopholes, I’ve received threats over 2023 ambition Seyi Makinde, governor of Oyo, says he has received threats over the forthcoming 2023 governorship election in the state, because he has blocked loopholes in the system.Advertisement According to a.
NPHCDA: 374,585 Nigerians have received COVID vaccine over 90,000 in Lagos The National Primary Health Care Development Agency (NPHCDA) says the number of Nigerians who have received the COVID-19 vaccine has exceeded 350,000.Advertisement The agency disclosed this in an update on.
Vanguard News
Finance bill ‘ll exempt minimum wage earners from Personal Income Tax ― Minister
On
Zainab Ahmed
The Minister of Finance, Budget and National Planning, Dr Zainab Ahmed says the 2020 Finance bill, when signed into law will exempt minimum wage earners from Personal Income Tax (PIT).
Ahmed made this known on Friday in Abuja at a public hearing organised by the House of Representatives Committee on Finance.
“In the light of the current economic situation, it is proposed that persons who earn minimum wage are exempted from paying PIT,” the minister said.
Ahmed explained that no new tax was introduced neither was there any tax increase in the bill.