Vice-President Yemi Osinbajo on Saturday, January 25; asserted that the Finance Act 2020 would stimulate the Nigerian economy and put the country on the path of geometric economic growth.
Osinbajo made the assertion at the Inspiration Conference 2020 of the Redeemer’s Men Fellowship (Lagos Regions) in Lagos.
It was reported that the conference had as its theme: “Galvanised for Geometric Growth”.
He said the bill, which was signed by President Muhammadu Buhari on Jan. 13; was aimed at shoring up revenue for all levels of government to meet up with their expenditure.
This, he said, was in addition to it supporting Small and Medium Enterprises (SME) in the country.
“The challenges of growing the economy border on creating an environment favourable to businesses and low revenue generation,” Osinbajo said.
He said that the 2020 budget of N10.6 trillion has a deficit of N2.2 trillion; “so it is clear that we are running a fairly large deficit”.
“The sources of revenue are oil proceeds and taxes; most states do not generate enough revenue to meet their financial expectations,” Osinbajo said.
He cited Adamawa, Benue and Ekiti as some of the states with very low Internally Generated Revenue (IGR); too inadequate to cater for their expenditure.
The vice-president justified the increment of the Value Added Tax (VAT) from 5 per cent to 7.5 per cent; noting it to be very low when compared to other African countries.
“Ghana has 12.5 per cent; Cameroun has 19.25 per cent; Mexico with 16 per cent; South Africa at 15 per cent and Egypt at 14 per cent.
“To make things easier for the common man; we have exempted 16 classes of food items, tampons, sanitary towels, and tuition fees from nursery to tertiary.
“Also, before the Finance Act, many companies operating in the country without physical presence escaped taxation.
“Most digital companies made significant revenue from e-commerce, online advertising and the likes; but were not taxed.
“But now, once you have a significant economic presence in Nigeria; you are eligible to pay tax,” he said.
Osinbajo expressed confidence in the Nigerian economy; maintaining that the government would continue to provide the enabling environment for businesses to thrive.
Search The Poise
Promote Your Music
Recent Posts On The Poise
- US Kicks Against Lekki Toll Gate Shootings, Says Soldiers Involved Should Be Punished
- “Return ‘Oba of Lagos’ Staff of Office or face the consequences” – Akinshemoyin ruling house warns
- Read full text of President Buhari’s state of the nation address
- Celtic 1-3 Milan: Rossoneri extend winning run in Glasgow
- Tottenham 3-0 LASK: Bale starts as Spurs ease to Europa League win
- Leicester City 3-0 Zorya Luhansk: Foxes cruise in Europa League opener
- Standard Liege 0-2 Rangers: Roofe raises the bar after Tavernier hits the spot
- Rapid Vienna 1-2 Arsenal: Aubameyang to the rescue after Leno howler
- Lagos govt condemns looting of COVID-19 palliatives in Amuwo Odofin
- Bill Clinton charges Nigerian govt to dialogue with #EndSARS protesters
Top Posts & Pages
Entertainment News3 years ago
Justin Bieber & Selena Gomez Have Started Hanging Out Again
Articles3 years ago
Marcus Rashford’s Girlfriend Lucia Loi
Photos3 years ago
Leroy Sane’s Girlfriend Candice Brook
Celebrities2 years ago
David Beckham Allegedly Got His Daughter’s Teacher Pregnant
News2 years ago
Nigeria Gets Fresh $200m Loan To Finance Electricity Projects
Celebrities3 years ago
Jesse Lingard Breaks Up With Girlfriend Jena Frumes
Sport2 years ago
Bournemouth Signs Liverpool Defender Nathaniel Clyne On Loan
Entertainment News3 years ago
Top 10 Sexiest Young Female Celebrities in The World