Business Policy & Business

FG shoots up VAT to 7.5%

A major decision was today taken by the Buhari administration to raise the current 5 percent rate of value added tax (VAT) by 50 percent.

The increase, when approved by the National Assembly, will leave the new rate of VAT at 7.5 percent, a move that will inevitably shoot up costs of goods and services in Nigeria for consumers.

The decision to raise VAT has been in the making for decades, since the tax reforms initiated by the Obasanjo administration in 2003. It has however been shelved each time it was proposed as its full effects on the consumers, who bear the final burden are considered.

Zainab Ahmed, Minister in charge of Finance, Budget and National Planning, announced the approval of Buhari’s Federal Executive Council – the highest policy making organ in the country – to raise VAT, after today’s meeting chaired by the President Buhari.

She was not forthcoming on what has changed in the economy that has created the condition for its implementation this year.

She stated, however, that because VAT is a law, the decision of the federal government would have to given a stamp of approval by the national assembly through the amendment of the VAT Act, 2004.

Implementation of the measure will therefore not start until the law is amended. The government also set a date for 2020 to implement the new rate.

Ahmed also announced the cabinet decision to sensitize states, local governments and other stakeholders  on the approved increase.

The value added tax was amended in 2004 and is calculated as a flat rate of 5% on all goods and services sold in Nigeria as stipulated in section 4 of the Act. It is one of the many indirect taxes that government has used to generate income.

wal maet 3m painter mask, astm stock price, what kind of mask needed for diatomaceous earth 3m n95, riteaid n95 mask, what kind of respirator do i need for asbestos, p3 disposable mask painting fumes, medline orlando fl, ppe n95 mask, at home respirator mask sleep apnea, best n95 mask smoke, survivalist forums gas mask vs full faced respirator, g max helmet face shield, can a surgical mask protect from tb, heated face mask winter, dont want to shave for respirator, face mask around me, can face masks ruin your skin, little rascals face masks, n95 mask one way, road bike helmet with face shield, gas mask respirator cartridge, respirator mask in spanish, cloverdale n95 masks, precautions for ebola n95 respirator, 3m n95 8511 face mask skagit, coconut oil face masks diy, surgical mask and flu, n95 8210 plus, silicone face mask brush, which respirator cartrdidge for mold removal, bee honey face masks protection mask, cooo surgical mask, what respirator do i need with tamiya lacquer sprays, benicia paint stores n95 mask, lions packers face mask, 3m 6800 mask filters, harga masker 3m n95, how to use aloe as face mask, bandana dust mask using, how to install resmed quatro fx full face mask cushion, cleangear respirator disinfectant, 3m mask n95 surgical, what do peel off face masks do, face mask for workers, how long face mask nature republic, how to make marionette face mask of paper on cricut, which is better paint mask 3m or gerson, 3m 8214 dust mask, medical supply face masks clear plastic,