{"id":1885,"date":"2019-11-06T00:00:00","date_gmt":"2019-11-06T00:00:00","guid":{"rendered":"https:\/\/placng.org\/i\/the-finance-bill-2019-scales-second-reading-in-the-senate\/"},"modified":"2019-11-06T00:00:00","modified_gmt":"2019-11-06T00:00:00","slug":"the-finance-bill-2019-scales-second-reading-in-the-senate","status":"publish","type":"post","link":"https:\/\/placng.org\/i\/the-finance-bill-2019-scales-second-reading-in-the-senate\/","title":{"rendered":"The Finance Bill, 2019 Scales Second Reading In The Senate"},"content":{"rendered":"\n<p>The Senate at its plenary session of\nWednesday, 6 November 2019 concluded debate on the Finance Bill, 2019 (SB 140)\nand referred same to its Committee on Finance. The Bill proposes an increment\nto tax and fiscal laws to ensure adequate funding of the 2020 Budget.<\/p>\n\n\n\n<p>Leading the debate on the Bill, Senate\nMajority Leader, Sen. Abdullahi Yahaya (APC: Kebbi) stated that the objectives\nof the Bill include:<\/p>\n\n\n\n<ul><li>Promoting fiscal equity by mitigating\ninstances of regressive tax invasion;<\/li><li>Reforming domestic tax laws to align\nwith global best practices;<\/li><li>Introducing tax incentives for\ninvestment in infrastructure and capital markets;<\/li><li>Supporting small businesses in line\nwith the on-going reform on the ease of doing business;<\/li><li>Raising revenues for government, by\nvarious fiscal measures, including a proposal to increase the rate of Value\nAdded Tax from 5% to 7.5%.<\/li><\/ul>\n\n\n\n<p>Sen. Yahaya explained that additional\nfunds from the increment of taxes would be used to fund healthcare services,\neducational and infrastructural programs. In addition, 85% of all Value Added\nTax (VAT) revenues will be allocated to both State and Local Governments.\nHowever, he noted that provisions of the Finance Bill would mean consequential\namendments to the following tax laws:<\/p>\n\n\n\n<ol><li><strong>Company\nIncome Tax Act, 2004 <\/strong>to\nbroaden domestic taxation earned by non-resident companies in Nigeria through\ndependent agents and online market platforms. This measure was proposed by the\nOrganization for Economic Cooperation and Development (OECD);<\/li><li><strong>Value\nAdded Tax Act, 2007<\/strong> to\nimprove the efficiency of Nigeria\u2019s VAT system, expand VAT coverage by\naddressing critical issues such as taxation of digital economy, VAT\nregistration thresholds etc;<\/li><li><strong>Customs\nand Excise Tariff &nbsp;(Consolidation) Act,\n2004 <\/strong>to subject certain\nimported goods to excise duties in a similar manner with locally manufactured\ncounterparts;<\/li><li><strong>Personal\nIncome Tax Act, 2007 (as amended) <\/strong>to\nprovide clarity and efficiency in the administration of individual income taxes\nin Nigeria;<\/li><li><strong>Capital\nGains Tax Act, 2007 <\/strong>to\nprevent abuse of the provisions of the Act on group restructuring.<\/li><li><strong>Stamp\nDuties Act, 2007 <\/strong>to\nincrease revenue generation from duties on electronic stamps.<\/li><li><strong>Petroleum\nProfit Tax Act, 2004 <\/strong>by\nremoving the tax exemption granted for dividends or income received from\ncompanies charged under this Act to increase generated revenue. <\/li><\/ol>\n\n\n\n<p>In his submissions, Sen. Yahaya said\nthat the Bill had been formulated to meet the critical needs of the country by\nintensifying revenue-generating efforts and ensuring that all bottlenecks\nassociated with fiscal and tax policies are adjusted. It will be recalled that\nPresident Muhammadu Buhari submitted the Finance Bill, 2019 along with the 2020\nAppropriation Bill in a Joint Sitting of the National Assembly on Tuesday, 8\nOctober 2019. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Senate at its plenary session of Wednesday, 6 November 2019 concluded debate on the Finance Bill, 2019 (SB 140) and referred same to its Committee on Finance. The Bill proposes an increment to tax and fiscal laws to ensure adequate funding of the 2020 Budget. Leading the debate on the Bill, Senate Majority Leader, [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":1878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":""},"categories":[24],"tags":[],"acf":[],"author_meta":{"display_name":"PLAC","author_link":"https:\/\/placng.org\/i\/author\/olumide-adebayo\/"},"featured_img":"https:\/\/placng.org\/i\/wp-content\/uploads\/2019\/12\/senate-confirms-all-43-ministerial-nominees-300x156.png","coauthors":[],"tax_additional":{"categories":{"linked":["<a href=\"https:\/\/placng.org\/i\/category\/news\/\" class=\"advgb-post-tax-term\">News<\/a>"],"unlinked":["<span class=\"advgb-post-tax-term\">News<\/span>"]}},"comment_count":"0","relative_dates":{"created":"Posted 6 years ago","modified":"Updated 6 years ago"},"absolute_dates":{"created":"Posted on November 6, 2019","modified":"Updated on November 6, 2019"},"absolute_dates_time":{"created":"Posted on November 6, 2019 12:00 am","modified":"Updated on November 6, 2019 12:00 am"},"featured_img_caption":"Senate Set to Commence Review of Constitution Alteration Bills","series_order":"","_links":{"self":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1885"}],"collection":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/comments?post=1885"}],"version-history":[{"count":0,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/posts\/1885\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media\/1878"}],"wp:attachment":[{"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/media?parent=1885"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/categories?post=1885"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/placng.org\/i\/wp-json\/wp\/v2\/tags?post=1885"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}