Zainab Ahmed, the minister of finance, budget and national planning, says the date for the implementation of the provisions contained in the finance bill will be announced in due course.
In a statement released on Tuesday by Yunusa Abdullahi, her special adviser, the minister said the finance bill is for the people as items related to basic needs have been exempted from value-added tax.
The newly signed bill expands the VAT-exempt items to include honey, bread, cereals, cooking oils, culinary herbs, fish. flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.
“The strategic objectives in the finance bill recognises the crucial relationship between fiscal policy, the regulatory environment and the strong capital market we all seek to effect in Nigeria,” the statement read.
According to Ahmed, annual budgets to be presented before the national assembly in the future will be accompanied by a finance bill.
This, she said, will help with meeting revenue projections, “provide us with additional opportunities to incrementally improve the fiscal policy and regulatory/legal environment in order to further strengthen our domestic capital market, and ultimately ensure sustained and inclusive growth and development”.
The minister said a large amount of the money that would be realised from the increased VAT would be disbursed to states and local governments.
President Muhammadu Buhari signed the finance bill into law on Monday, amending parts of the company income tax act, value-added tax act, personal income tax act.