Nigerian govt confirms plans to lift VAT to 10% — Daily Nigerian
The Minister of Finance, Wale Edun, has confirmed plans by the Federal Government to extend the Value Added Tax, VAT, fee.
Mr Edun disclosed this whereas talking at an investor assembly throughout the ongoing IMF/World Bank Annual Meetings in Washington, DC.
Recall that in September, Chairman, Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, had stated the committee was proposing a regulation to the National Assembly to extend valued added tax from the present 7.5% to 10%.
The invoice was subsequently transmitted to the National Assembly for consideration by President Bola Tinubu.
According to Mr Edun, the proposed VAT improve, presently into consideration by the National Assembly, will likely be utilized progressively and can primarily have an effect on luxurious gadgets.
While explaining how the coverage would work, Mr Edun emphasised that the hike will largely goal luxurious items, including that important gadgets consumed by poorer and weak Nigerians would stay exempt from VAT or entice a zero fee.
He stated the listing of important items exempted from VAT will likely be made obtainable to the general public sooner or later.
He stated: “In phrases of VAT, President Bola Tinubu’s dedication is that whereas implementing troublesome and wide-ranging however essential reforms, the poorest and most weak will likely be protected.
“So, the bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods, while at the same time exempting or applying a zero rate to essentials that the poor and average citizens purchase,” the minister was quoted as saying by the Daily Trust Newspaper.
