FG To Provide More Tax Incentives For Nigerian Businesses

Following the finance bill 2020 that was approved by the Federal Executive Council FEC, the Federal Government wants to provide more tax incentives for Nigerian businesses and individuals.

This was formally presented to State governors at a National Economic Council meeting led by the vice president Prof Osinbajo.

The proposed bill which has been presented to the National Assembly included reduction duties on all vehicles meant for transporting of goods from 35% to 10%, reduction of levy for cars that transport people from 35% to 5%, granting of tax relief to companies that donated to Covid-19 under CACOVID and a lots more.

This was made known today 20th November via the Presidency twitter page.

Some highlights of the proposed bill which is now headed to the National Assembly include:

1. Reduction in duties on tractors from 35 to 10 per cent

2. Reduction in duties on motor vehicles for the transportation of goods from 35 to 10 per cent.
— Presidency Nigeria (@NGRPresident) November 20, 2020

5. 50 per cent reduction in minimum tax; from 0.5% to 0.25% for gross turnover for financial years ending between Jan 1st, 2020 and Dec 31st, 2021.

6. Granting of tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition (CACOVID).
— Presidency Nigeria (@NGRPresident) November 20, 2020

8. Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business.
— Presidency Nigeria (@NGRPresident) November 20, 2020