Buhari Sends Amendment Bill to Exempt Animal Feed from 7.5% VAT PolicyFeatured, Latest News, News Tuesday, March 10th, 2020
(AFRICAN EXAMINER) – President Muhammadu Buhari has asked the National Assembly (NASS) to exempt animal feed from the list of items just included in the payment of the Value Added Tax (VAT).
This was made public Tuesday by the President of the Senate, Ahmed Lawan and Speaker of the House of Representatives Hon Femi Gbajabiamila.
The disclosure according to the NASS Leaders was contained in letter sent by Buhari to the two chambers.
The letter read in part: “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”
The President said further that the bill clarified that the administrative effective date for the increase in VAT from 5 per cent to 7.5 per cent was February 1, 2020.
Similarly, President Buhari drew the attention of the NASS members to the fact that Animal Feeds have been included in the list of basic food items that are exempted from VAT.
He explained that aspects of the existing tax holiday incentive for agriculture should be targeted at small and medium-sized companies.
Such firms the letter indicated should be those that invest in primary crop, livestock, forestry and fishing agricultural production.
The President added that the incentive would also be administered by the Nigerian Investment Promotion Commission pursuant to the Industrial Development (Income Tax Relief) Act.
The President also said the amendment would help to support the implementation of the 2020 Federal Budget.
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