The Federal Executive Council (FEC) approved two executive orders and five amendment bills on 6 June 2018. Value Added Tax Act (Modification) Order and Review of Goods Liable to Excise Duties and Applicable Rate Order are the two executive orders. Also, the five amendment bills cover the Companies Income Tax Act (Amendment) Bill, Personal Income Tax Act (Amendment) Bill, Value Added Tax Act (Amendment) Bill, Customs, Excise, Tariff ETC (Consolidation) Act (Amendment), and Industrial Development (Income Tax Relief) Act (Amendment) Bill.
These revisions seek to elucidate provisions with multiple interpretations and update obsolete sections. For instance, residential property, leases on rental, transport for general public and life insurance would now be exempted from VAT. Furthermore, under CIT, the tax rate for Micro, Small and Medium Enterprises (MSME) would drop from 20% to 15%. Taxpayers should expect a lower tax burden and, in the long run, Nigeria would be a more conducive environment for investors.