As the federal government go aggressive in revenue generation, the consequence will most significantly bear down on Nigerians’ savings because the value added tax on good and services is now up by 50 percent.
Finnce Minister Zainab Ahmed said this Wednesday while briefing State House correspondents after the Federal Executive Council, FEC, meeting presided over by President Muhammadu Buhari.
According to her, the VAT will be moved from 5 percent to 7.2 percent.
Ahmed, however, said that the increase will take effect after the VAT Act is amended by the National Assembly and after consultation with stakeholders such as states, local councils, the private sector among others.
“Our projection is to finish consultations early enough so that it takes effect in 2020.”
The NASS will soon debate the proposal.
VATs are usually taken to reduce consumer savings and force them to spend as goods and services producers jack up their prices, and pass the increase to buyers.
You may be interested
For How Long Is My Motor Insurance Policy Valid?Webby - September 12, 2022
When purchasing auto insurance, you can tailor many aspects, including the types of coverage you select, the amount of your…
Gov. Abiodun’s fmr aide, Abidemi Rufai, bags five years imprisonment for fraudWebby - September 27, 2022
Abidemi Rufai, a former aide to the Ogun State Governor, Dapo Abiodun, has been sentenced to five years in prison…
Naira depreciates by over 21% in nine monthsWebby - September 27, 2022
Nigeria’s local currency, the Naira, has depreciated by over 21 per cent in nine months, beginning from December 31, 2021…
2023: Yoruba elders react as Afenifere endorses Peter ObiWebby - September 27, 2022
The Yoruba Council of Elders (YCE) has dissociated itself from the endorsement of the presidential candidate of the Labour Party, Peter…