New finance bill nigeria

You're referring to the new finance bill in Nigeria!

The Finance Bill 2020 is a legislative proposal aimed at amending the 2020 Appropriation Act and making significant changes to Nigeria's tax laws. The bill was introduced to the National Assembly in October 2020 and has since been passed into law.

Here are some key highlights of the new finance bill:

  1. Tax Rates: The bill proposes to increase the Value Added Tax (VAT) rate from 5% to 7.5%. This is expected to generate additional revenue for the government.
  2. Tax Exemptions: The bill seeks to remove tax exemptions for certain individuals and companies, including those in the oil and gas sector.
  3. Minimum Tax: The bill introduces a minimum tax of 0.5% of a company's gross turnover for companies with a turnover of N25 million or more.
  4. Tax on Digital Transactions: The bill proposes to tax digital transactions, including online transactions, to generate additional revenue.
  5. Tax on Non-Resident Companies: The bill seeks to tax non-resident companies that operate in Nigeria, including those that provide digital services.
  6. Tax on High-Net-Worth Individuals: The bill proposes to introduce a new tax regime for high-net-worth individuals, including those with assets valued at N50 million or more.
  7. Tax on Luxury Items: The bill seeks to impose a tax on luxury items, including cars, jewelry, and other high-end goods.
  8. Tax on Real Estate: The bill proposes to introduce a tax on real estate transactions, including property sales and rentals.
  9. Tax on Financial Institutions: The bill seeks to impose a tax on financial institutions, including banks and other financial institutions.
  10. Tax on Insurance Companies: The bill proposes to introduce a tax on insurance companies, including life insurance and general insurance companies.

The Finance Bill 2020 is expected to generate additional revenue for the government, which will be used to fund various development projects and initiatives. However, the bill has also been criticized for its potential impact on businesses and individuals, particularly those in the informal sector.

It's worth noting that the bill is still subject to implementation and may undergo further changes before it becomes effective.