President Muhammadu Buhari

…To effect Ist February 20 as Implementation Date of 7.5% VAT

….As FG Exempts Animal Feeds from VAT

By Henry Umoru

PRESIDENT Muhammadu Buhari has written the Senate, seeking for amendment of the 2019 Finance Act  to formally give it a legal framework that the implementation date for the increase of Value Added Tax, VAT  from 5% to 7.5% is 1st of February 2020.

In the letter dated 6th March, 2020, received 10th March,2020  and addressed to the President of the Senate, Senator Ahmad Lawan, President Buhari is also seeking for an Amendment of the Finance Act to exempt Animal Feeds as part of Basic Food items from the Value Added Tax, VAT.

According to the letter read by the President of the Senate during plenary yesterday, that Animal Feeds be included in the list of Basic Food ltems that are exempted from Value Added Tax forms part of the tax holiday incentive for agriculture, by targeting this incentive to small and medium sized companies that invest in primary crop, IivestocK, forestry and fishing agricultural production.

The President said that the incentive would also to be administered by Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Reliet) Act.

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Buhari’s letter read, “Pursuant to Sections 58 and 59 of Constitution of the Federal Republic of Nigeria1 999 (as amended), I formally 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% to 7.5% is the 1st of February 2020;

“That “Animal Feeds are included in the list of Basic Food ltems that are exempted 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, IivestocK, forestry and fishing agricultural production. This incentive is also to be administered by

Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Reliet) Act.

“While I trust that this Bil will be favourably considered for passage into law by the National Assembly so as to support the implementation of the 2020 Federal Budget. Please accept, dstinguished Senate President, the assurances of my highest consideration.”

Vanguard