Senate passes finance bill 2020

The senate has passed the 2020 finance bill for third reading.

The bill was passed after Solomon Adeola, chairman of the finance committee, presented a report for the consideration of his colleagues.

The legislation is seeking to reduce import levy on buses, tractors and other motor vehicles.

On December 2, the bill passed first and second reading on the same day at the senate after the federal lawmakers gave it special consideration.

A letter by President Muhammadu Buhari asking the lawmakers to consider and pass the bill was read on the floors of the senate and house of representatives on December 1.

While leading his colleagues to debate on the general principles of the bill, Yahaya Abdullahi, senate leader, had said that the bill is seeking to “provide fiscal relief for taxpayers by reducing the applicable minimum tax rate for two consecutive years of assessment.”

“The Capital Gains Tax Act is amended at section 36(2) of the CGTA to the extent that exemption on tax liability for compensation for loss of office which was hitherto limited to N10, 000.00 is now extended to N10, 000, 000.00,” he said.

“There is a new section 32 which provides that no tax shall apply to any trade or business transferred to a Nigerian company for the purposes of better organization of that trade or business.

“Section 4 of the Value Added Tax (VAT) act has been amended by increasing the value added tax payable by consumers from 5% to 7.5%. Section 19 increased the penalty payable by a taxable person for non-remittance within the specified period from 5% to 10%.”

The 2021 finance bill is amending the capital gains act; companies income tax act; industrial development (income tax relief) act; personal income tax act; tertiary trust fund act, customs and excise duties tariff; value added tax act; stamp duties act; and electronic transaction levy.

The bill was approved after the senators considered its clauses.

The house of representatives will have to concur before it is sent to the president for assent.