25 C
Lagos
Friday, April 16, 2021
More

    FG Increased VAT To 7.5% Not 7.2%, Says Finance Minister

    Must Read

    Shooting in US city of Indianapolis leaves “mass casualty’

    Multiple people were shot in an incident Thursday in the US city of Indianapolis, according to police, although the...

    Anthony Joshua, Tyson Fury ‘approve’ offer for undisputed world title fight

    Anthony Joshua, Tyson Fury ‘approve’ offer for undisputed world title fight Boxing promoter, Eddie Hearn, has said Anthony Joshua and...

    BREAKING: Europa League semi-final fixtures confirmed

    Arsenal will play Villarreal in the Europa Cup semi-final this season. The Gunners hammered Slavia Prague 4-0 in Czech Republic...

    The Minister of Finance, Budget and National planning, Zainab Ahmed, Friday revealed that the federal executive council (FEC) approved an increase in value added tax (VAT) from 5% to 7.5% and not 7.2% which was announced earlier.

    Ahmed told state house correspondents at the end of the cabinet meeting that the FEC approved the increase to 7.2%, which is now subject to an amendment of the VAT act of 1994 by the national assembly.

    But in a statement on Friday, Yunus Abdullahi, spokesman of the minister, said the proposed increase was from 5% to 7.5% and is based on the recommendation of the presidential technical advisory committee.

    READ ALSO: Phillipines President Duterte Advises Citizens On How To Attack Corrupt Officials

    He said on the committee are economists from public and private sectors with Bismack Rewane, managing director and chief executive officer of Financial Derivatives Company Limited, serving as its chairman.

    Abdullahi said the committee, in its report, recommended the increase in the VAT rate from 5% to 7.5%, adding that the prevailing VAT rate in Nigeria was still about half the African average.

    “The proposed increase is subject to legislative intervention by the National Assembly who will have to amend the Revenue Act to reflect the proposed increase,” the statement read.

    Abdullahi said the VAT exempts food, medicines and other basic necessities, thereby reducing the economic burden on the poor.

    “The existing VAT Act exempts the basic necessities such as food, medicines and education, which therefore minimises the impact on the poor and vulnerable segments of the Nigerian society from the burden thereof,” he said.

    “The VAT increase, if correctly implemented, could bring in huge revenues, which would actually reduce the fiscal deficit burden.”

    - Advertisement -

    LEAVE A REPLY

    Please enter your comment!
    Please enter your name here

    - Advertisement -

    Latest News

    Shooting in US city of Indianapolis leaves “mass casualty’

    Multiple people were shot in an incident Thursday in the US city of Indianapolis, according to police, although the...
    - Advertisement -

    More Articles Like This

    - Advertisement -