The minister said the Bill would provide the government with additional opportunities to incrementally improve its fiscal policy and regulatory/legal environment to further strengthen the domestic capital market, and ultimately ensure sustained and inclusive growth and development.
The Bill is also expected to introduce tax incentives for investments in infrastructure and capital markets; support small businesses in line with the ongoing Ease of Doing Business Reforms; and raise revenues for the government by various fiscal measures, including a proposed increase in the rate of Value Added Tax from 5 per cent to 7.5 per cent.
The tax to be amended include the Companies Income Tax Act, Cap. C2, Laws of the Federation of Nigeria, 2004 ; curb Base Erosion and Profit Shifting as proposed by the Organization for Economic Cooperation and Development . The other tax provisions to be amended by the Bill to stimulate and foster overall economic growth include the Value Added Tax Act, Cap V, LFN 2007 to bring it in line with global best practice.
This will subject certain imported goods to excise duties in a similar manner as their locally manufactured counterparts, while Personal Income Tax Cap P8, LFN 2007 will be amended to provide clarity and efficiency in the administration of individual income taxes in Nigeria.