New Finance Bill Scales 2nd Reading, Proposes 10% VAT For Defaulters

Nigeria’s Finance Bill 2020 has scaled second reading on the floor of the Senate.

The proposed legislation stipulates various amendments made to the 2019 version of the Act.

The Leader of the Senate, Yahaya Abdullahi, in his lead debate said the bill proposed amendments into Capital Gains Act and the Value Added Tax.

He said Section 19 increased the penalty payable by a taxable person for non-remittance within the specified period from 7.5 per cent to 10 per cent

He also said section 28 of the Act provides penalty for failure to give notice of change of address or permanent cessation of business.

He said the penalties were increased from N5,000 to N50,000 in the first month and N25,000 in subsequent months.

The Bill, according to the Senate Leader, proposed a new section 8 of the VAT Act to cater for the registration of a taxable person upon commencement of business.