The Federal Government has proposed a tax relief to companies that donated to the COVID-19 relief fund under the private sector coalition, CACOVID.
This was contained in the new 2020 Finance Bill approved by the Federal Executive Council.
According to a statement from the presidency at the end of the virtual National Economic Council (NEC) meeting which was presided over by the Vice President, Professor Yemi Osinbajo, at the Presidential Villa in Abuja,
It follows the effort of government to provide more incentives and reduce the tax burden on Nigerian businesses and individuals in the face of a harsh economic environment caused by the devastating impact of the coronavirus pandemic.
The approved Finance Bill 2020 which was presented to the state governors at the NEC meeting, also highlighted;
*A Reduction in duties on tractors and motor vehicles for the transportation of goods from 35 to 10 per cent,
*Exemption of small companies from payment of education tax under the Tertiary Education Trust fund (TETFUND),
*Introduction of software acquisition as qualifying capital expenditure to improve the ease of doing business,
*50 per cent reduction in minimum tax; from 0.5 per cent to 0.25 per cent for gross turnover for financial years ending between January 1, 2020, and December 31, 2021
Amongst others…
The bill is being sent to the National Assembly for passage.
The Coalition Against COVID-19 (CACOVID), which was launched on March 26, 2020, is a private sector-led organization in Nigeria established to assist the government in the fight against the coronavirus disease across the country.
