President Muhammadu Buhari has announced that the 2020 draft finance bill would provide some tax incentives to Nigerians who are currently facing socio-economic challenges.
The President Muhammadu Buhari administration is concluding work on the 2020 Finance Bill, which will support the implementation of the 2021 Budget.
#FinanceBill2020 includes several tax and other fiscal incentives to Nigerians, aimed at helping cushion the socio-economic challenges being faced; the president tweeted
The bill would, among other things, reduce import duties and levies on tractors and vehicles transporting goods, Exempt small companies (with less than N25m turnover) from payment of education tax (TETFUND). In addition, the bill provides tax relief for small businesses and a 50% reduction in minimum tax for companies “for financial years ending between January 1st, 2020 and December 31st, 2021″.
The bill would also set up a Crisis Intervention Fund for Nigeria”, the presidency added in a separate tweet.
Nigeria has the largest economy in Africa, with the oil sector being its most significant revenue earner. However, according to the latest data, the Western African country’s GDP has contracted by 6.1 percent in the second quarter due to the coronavirus pandemic.