The Federal Government has commenced the immediate implementation of some aspects of the Finance Act with the implementation of 7.5 percent Value Added Tax on government transactions.
The Accountant-General of the Federation, Ahmed Idris, confirmed the development during a chat with journalists on Wednesday in Abuja.
The move followed the signing of the Finance Bill into law on Monday, by President Muhammadu Buhari after it was passed by the National Assembly on November 21, 2019.
The objectives of the Act are to strategically promote fiscal equity by mitigating instances of regressive taxation; reform domestic tax laws to align with global best practices, and introduce tax incentives for investments in infrastructure and capital markets.
It is also aimed at supporting small businesses in line with the ongoing ease of doing business reforms; and raise revenues for the government by various fiscal measures, including an increase in the rate of Value Added Tax from five percent to 7.5 percent.
The bill also seeks to provide efficiency in the administration of individual income taxes in Nigeria.