The Federal Executive Council on Wednesday approved the 2020 Finance Bill.
Following the development, the Bill will now be transmitted to the National Assembly for passage.
Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed after the meeting that the 2020 Finance Bill would support the 2021 fiscal year budget.
Ahmed, who addressed journalists, allayed fears that the Bill will lead an increase in taxes.
Noting that the situation in the country does not warrant an increase in taxes, she however noted that, through the bill, the Federal Government plans to make incremental changes to tax laws relating to Customs and Excise as well as other fiscal laws to support the implementation of the annual budget.
She said, ”In the last Finance Bill 2019, we reduced taxes from 30 percent to 20 percent for enterprises that have turnover of between N25m to N100m.
“We also moved taxes from 30 percent to zero percent for enterprises that have turnover of N25m and below, which means they pay no taxes.
“What we are doing in the Finance Bill 2020 is to further renew the education tax of two percent for that lower category of enterprises that have turnover of N25m and below.
“So, when we say ‘incremental,’ it means gradually making changes; it means the changes may be up or down but for now, with the economic slowdown, our assessment is that this is the time to cut down on taxes, to not increase taxes at all and to not increase levies.
“This is the time that we need to do that and that is what we are trying to do.
“Another example is the reduction in the duties for vehicles that will be related to the mass transit. Again, no increase in taxes and no increase in VAT.”
It would be recalled that when Buhari presented the 2021 Appropriation Bill to the National assembly, he noted that the 2020 Finance Bill will also follow to support the budget proposals.
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