By Bronson Jayamanna
LAGOS, NIGERIA (CWBN)_ President Muhammadu Buhari has forwarded the Finance Bill 2020 to the National Assembly for consideration along with the 2021 Appropriation Bill.
Both the Senate President Ahmad Lawan and House Speaker Femi Gbajabiamila from the House of Representatives read Buhari’s letter at Tuesday’s plenary opening.
Although the cover letter was titled ‘Transmission of the Finance Bill 2020 to the National Assembly for consideration and passage into law in support of the 2021 budget,’ the bill introduced numerous changes to existing tax laws and financial regulations in response to the adverse economic and current recession effects due to the COVID-19 pandemic.
The letter continued to read, “Pursuant to Sections 58 and 59 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), I formally request that the Finance Bill be considered by the Senate/House of Representatives for passage into law.”
“The Finance Bill, 2020, seeks to support the implementation of the 2021 budget by proposing key reforms to specific taxation, customs, excise, fiscal and other laws[…]”
Accordingly, the Bill intends to establish “appropriate counter-cyclical fiscal policies to respond to the economic and revenue challenges precipitated by the decline in international oil prices, as well as the impact of the COVID-19 pandemic on the Nigerian economy.”
Buhari also proposed the reformation of extant fiscal policies “to prioritise job creation, economic growth, socio-economic development, domestic revenue mobilisation, as well as to foster closer coordination with monetary and trade policies.”
Providing fiscal relief for taxpayers by “reducing the applicable minimum tax rate for two consecutive years of assessment, as well as reforming the commencement and cessation rules for small businesses”, were among the tax reforms introduced by the Bill.
“Propose measures to fund the Federal Government’s COVID-19 pandemic response and introduce provisions to enhance the recovery of corporate donations towards responses to the COVID-19 pandemic, as well as any similar crises in the future,” the letter read.
President Buhari added, “I trust that this bill will be favourably considered by the National Assembly, to accelerate its passage into law, so as to support the implementation of the 2021 Federal Budget.”
Edited by Elishya Perera
