The Nigerian Senate on Thursday passed the Finance Bill amending seven Tax Acts in the process.
The bills include; Company Income Tax, Customs and Excise Tarrif, Personal Income Tax, Capital Gain Tax, Value Added Tax, Stamp Duty Act, and Petroleum Profit Tax.
The upper legislative chamber passed the Finance Bill after a clause by clause consideration of the report of its Committee on Finance.
This was however amid concerns from some lawmakers mainly from the opposition, Peoples Democratic Party (PDP), that the amendment especially the increase in Value Added Tax from 5% to 7.5% could increase the hardship of Nigerians.
While PDP lawmakers wanted the VAT to remain at 5%; those in the ruling APC were convinced that the accruable revenue from the increased VAT regime was more than the pain.
Lawmakers expressed similar fear concerning the Stamp Duty Act as well as the proposed increase in the Petroleum Profit Tax.
Speaking with reporters, Chairman, Senate Committee on Finance, Adeola Olamilekan, said the bill was not after making life difficult for the people.
He said apart from the VAT which was targeted at luxury items, the Finance Bill did not impose additional taxes on citizens rather created reliefs for ‘”Ease of Doing Business” in the country.
The reliefs he said included tax exemption for companies whose annual profits were less than N25 million.
He also denied any increase in Personal Income Tax and Minimum Tax.
President Muhammadu Buhari had submitted the Finance Bill along with the Appropriation Bill to the Senate in October to promote fiscal equity, reform Nigeria’s domestic tax laws, an arrangement the Senate hopes will become an annual ritual.
