What the proposed 7.5% increase in VAT portends

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What the proposed 7.5% increase in VAT portends

A News Analysis by Mustapha Sumaila of News Agency of Nigeria (NAN)

The proposed increase in the Value Added Tax (VAT) from five per cent to 7.5 per cent by the Federal Government and its resolve to commence implementation in 2020 after necessary consultations has been raising dust by many Nigerians.

A lot of Nigerians complained that the planned increment would cause inflation and further aggravate the hardship being experienced by the people.

Some experts believe the proposed upward review of VAT is the right step in the right direction owing to dwindling oil prices while others faulted the timing.

The Federal Government had explained in various fora that the proposed tax was not targetting the poor and the rural dwellers but the rich in urban areas with a view to getting more revenue to run the government.

VAT is a consumption tax levied on products at every point of sale where value has been added, starting from raw materials…



Source: News Agency of Nigeria