2020 budget update: Why we will raise threshold for VAT – Buhari

The first joint session of the National Assembly is underway for the presentation of the 2020 Appropriation Bill. 

President Muhammau Buhari who is presenting the budget at the National Assembly Complex has said that the threshold for VAT registration will be raised to N25m turnover per annum, to bring relief to our small(est) businesses.

Buhari also stated that domiciliary accounts in foreign missions will be captured in TSA, as well as for GOEs

He added that Debt service is estimated at 2.45 trillion Naira and the receipts from VAT in the last budget year were below expectation.

He also said, “We are current on salaries and over head costs.”

The president stated that Nigeria remains committed to meet its debt service obligations.

On the area of allocations, he said “Allocations include Works and Housing : N262b Power: N127bn Transportation: N123bn UBE: 112bn Defence: N100bn Zonal Intervention Projects: N100bn Agriculture and Rural Devt: N83bn Water Resources: N82bn Niger Delta: 81bn Education: N48bn Social Work:30bn, FCT: 28bn.” 

The President says the main emphasis will be on the completion of as many ongoing projects as possible, instead of starting new ones.

He said, “2.46 trillion Naira is proposed for capital projects in the 2020 budget, the president reveals.”

President Buhari says he has directed the stoppage of salaries for any staff not captured in the Integrated Payroll and Personnel Information System (IPPIS) by end of October 2019.

He added that budget for National Human Rights Commission (NHRC) has increased from N1.5 billion to N2.5 billion in the 2020 budget.

Details shortly….