By Aare Afe Babalola
Value Added Tax is a consumption tax created by statute. Though levied at every level of the consumption chain, VAT is borne by the final consumer of the product or service.
Section 2 of the Value Added Tax, 1993 provides that “the tax shall be charged and payable on the supply of all goods and services (in this Act referred to as ‘taxable goods and services’) other than those goods and services listed in the First Schedule to the Act”.
First Schedule to the Act lists the goods exempted from the payment of VAT as follows: All medical and pharmaceutical products, basic food items, books and educational materials, baby products, fertiliser, locally produced agricultural and veterinary medicine, farming machinery and farming transportation equipment, all exports, plant and machinery imported for use in the export processing zone, plant, machinery and equipment purchased for utilisation of gas in down-stream petroleum operations, tractors, ploughs…
Source: Vanguard Newspaper
