The Senate during Tuesday’s plenary read an executive bill from President Muhammadu Buhari to amend the Finance Act 2019 recently passed by the National Assembly and received Presidential assent on January 13, 2020.
Specifically, the Federal Government seeks to exempt “animal feeds” from taxable food items, so as to create incentives for small businesses involved in livestock, fishing and primary crop production in Nigeria.
In the formal letter, dated March 6, 2020, accompanying the executive bill, which was read by the President of the Senate, Ahmad Lawan, Buhari in his letter, said the amendment sought is aimed at clarifying the administrative date for the increase in Value Added Tax from 5% to 7.5%, effective from February 1, 2020.
The letter reads: “Pursuant to Sections 58 and 59 of the Constitution of the Federal Republic of Nigeria (as amended), I formally write to request that the Finance Act, 2019 (Amendment) Bill, be considered by the Senate for passage into law.
“This bill seeks to amend the Finance Act, 2019, as recently passed by the National Assembly, by clarifying: that the administrative effective date for the increase in Value Added Tax from 5 percent to 7.5 percent is the 1st of February, 2020.
“That “Animal Feeds” are included in the list of Basic food items that are exempt from Value Added Tax; and Aspects of the Tax holiday incentive for agriculture, by targeting this incentive to Small and Medium-sized companies that invest in primary crop, livestock, forestry and fishing agricultural production.
“This incentive is also to be administered by the Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act,” according to a statement by Ezrel Tabiowo, Special Assistant (Press) to President of the Senate.