By Adejumo Enock
The Vice President of Nigeria, Professor. Yemi Osinbajo said the Federal Government decided to slash taxes so as to make the country’s economy more attractive to investors.
He disclosed this in a virtual investment summit entitled “Post-Covid-19 resurgence: Targeting Diaspora Investment on Friday, where he also said, the 2020 Finance Bill is offering more incentives to make doing business in Nigeria more competitive.
The vice president said, the tax incentives in the proposed 2020 Finance Bill include reduction in duties on tractors from 35 to 10 percent; reduction in duties on motor vehicles for the transportation of goods from 35 to 10 percent and as well reduction of levy on motor vehicle for the transportation of persons from 35 percent to 5 percent.
Osinbajo also said, there are exemption of small companies from payment of education tax under the Tertiary Education Trust Fund particularly by companies with less than N25 Million turnover, 50 percent reduction in in minimum tax from from 0.5 percent to 0.25 percent for gross turnover for financial years ending between January 1, 2020 and December 31, 2021.
In addition, he stated that there will be granting of tax relief to companies that donated to the Covid-19 relief fund under the private sector coalition and introduction of software acquisition as qualifying capital allowance.