• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
Nairametrics
No Result
View All Result
Home Markets Market Views
NDDC, Cash transfer, President Buhari, non-oil Exports, oil revenue, export revenue, FG Waives import duties for medical supplies, Orders Customs to expedite clearing, Presidency faults report on Kyari as Buhari didn’t cancel memos, appointments approved by him

President Muhammadu Buhari

Now that President Buhari has signed the Finance Bill into law

CSL Stockbrokers by CSL Stockbrokers
4 years ago
in Market Views, Op-Eds, Politics, Research Analysis
Share on FacebookShare on TwitterShare on Linkedin

Two days ago, President Muhammadu Buhari signed the Finance Bill into law, hoping it would support the implementation of the 2020 budget. We recall the bill specified certain key objectives which it intends to achieve upon ratification and these were re-emphasised by the president in the tweet from his official account. They include:

  • Reform Nigeria’s tax laws to align with global best practices and ensure fiscal equity
  • Support Micro, Small and Medium Scale Enterprises in line with the Ease of Doing Business Reforms
  • Incentivize investments in infrastructure and capital markets
  • Raise government revenues.
ECOWAS economy grows by 3.1%, expected to hit 3.3% by end of 2019 , Dangote Refinery would help save $10 billion in forex - FG,, FG monitoring ‘Eco’ adoption by ECOWAS members amidst threat to Naira, CBN
Mrs Ahmed Zainab

The bill provides for significant adjustments to key tax laws aimed at boosting federal government revenue profile while supporting state governments to meet the new minimum wage revision. On Companies Income Tax (CIT) Act, the new Finance Bill provides a wider tax base for Non-Resident Companies (NRCs) following the introduction of provisions that create taxable presence for NRCs carrying on digital activities, consultancy, technical, management or professional services in Nigeria provided they have “significant economic presence”.

The definition of “significant economic presence” however remains unclear with the minister having the prerogative to determine that. Another significant adjustment made on the CIT act is the recategorization of companies for CIT payments. Small companies (Turnover up to N25m) are not required to make CIT payments while medium companies (Turnover > N25m but < N100m) will be charged 20%. Large companies (Turnover > N100m) will continue paying the previous 30% tax rate for CIT. The amendments also specify companies must now pay a minimum tax.

Another major highlight of the finance bill is the revision of Value-Added Tax rate from 5% to 7.5%. However, several exemptions were included in the amendment as part of efforts to cushion the impact of the increase on consumption.

[READ MORE: Telecommunications: Broadband penetration set to grow)

Furthermore, the Bill moderates the stamp duty on receipts to N50 on every transaction from N10,000 and above; and expands the definition of receipt to cover electronic transactions. This gives a legal basis to what is already being practised by Nigerian banks but raises the threshold to N10,000 from N1,000.

In our opinion, the Federal Government’s move is largely aimed at supporting government’s revenue. However, a key positive is that reduces the tax burden on MSMEs. While we think the provisions will aid improvement in government revenue, we reiterate that the government should focus on improving the tax base and compliance levels as this would provide better support for revenue generation without hurting an already beleaguered private sector.

________________________________________________________________________

CSL STOCKBROKERS LIMITED CSL Stockbrokers,

Member of the Nigerian Stock Exchange,

First City Plaza, 44 Marina,

PO Box 9117,

Lagos State,

NIGERIA.


Download Nairametrics App for breaking news and market intelligence.
   
Tags: Budget 2020Finance BilllawPresident BuharisignedValue-Added Tax rate
CSL Stockbrokers

CSL Stockbrokers

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *







NM newsletters
HFM
Glo
Kwakol
Abbey
Zenth Bank
UBA
Mega Millions

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • Nigerian co-founded startup, Lemfi suspends services to Ghana 
  • Nigeria Air: Keyamo kicks against Nigeria, Ethiopian Airline deal
  • EFCC raises alarm over rising ATM, Debit card fraud cases in Nigeria

Follow us on social media:

Recent News

LemFi

Nigerian co-founded startup, Lemfi suspends services to Ghana 

November 28, 2023
2nd Abuja Airport Runway: “Don’t send Contractors to site without NCAA approval” – Mshelia tells Keyamo 

Nigeria Air: Keyamo kicks against Nigeria, Ethiopian Airline deal

November 28, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Contact Us
  • Home
  • Markets
  • Sectors
  • Economy
  • Business News
  • Financial Literacy
  • Disclaimer
  • Ads Disclaimer

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Sectors
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macros
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In