Thread by @VAdegite

President Muhammadu Buhari presented the 2020 budget proposal of NGN10.33 trillion to lawmakers at the National Assembly today. #Budget2020

The following are the key fiscal highlights the 2020 budget proposal:

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1The budget is accompanied by a Finance Bill with five strategic objectives, in terms of achieving incremental, but necessary, changes to Nigeria’s fiscal laws. These objectives are:

a. Promoting fiscal equity by mitigating instances of regressive taxation;

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b. Reforming domestic tax laws to align with global best practices;
c. Introducing tax incentives for investments in infrastructure and capital markets;
d. Supporting Micro, Small and Medium-sized businesses in line with the Ease of Doing Business Reforms; and

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e. Raising Revenues for Government.

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2The Finance Bill proposes an increase of the VAT rate from 5% to 7.5%. #Budget2020

3Expansion of the VAT exemption list to include the following:

a. Brown and white bread;

b. Cereals including maize, rice, wheat, millet, barley and sorghum;

c. Fish of all kinds;

d. Flour and starch meals;

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e. Fruits, nuts, pulses and vegetables of various kinds;

f. Roots such as yam, cocoyam, sweet and Irish potatoes;
Meat and poultry products including eggs;

h. Meat and poultry products including eggs;

h. Milk;

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i. Salt and herbs of various kinds; and

j. Natural water and table water.

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4VAT registration threshold to be set at NGN25 million in turnover per annum. #Budget2020