The proposed increment of Value Added Tax (VAT) from 5 percent to 7.2 percent has drawn condemnation from Nigerians.
The Minister of Finance, Budget and Planning, Zainab Ahmed, making the disclosure at the Federal Executive Council meeting, said that it was not going to be implemented immediately until the act was reviewed.
We also reported to council and council has agreed that we start the process towards the increase of the VAT rate. We are proposing and council has agreed to increase the VAT rate from 5 percent to 7.2 percent.
This is important because the federal government only retains 15 percent of the VAT – 85 percent is actually for the states and local governments and the states need additional revenue to be able to meet the obligations of the minimum wage.
This process involves extensive consultations that need to be made across the country at various levels and also it will involve the review of the VAT act. So, it is not going to be implemented immediately until the act is reviewed.Zainab Ahmed – legit.ng
Nigerians reacted on social media to express how they felt about the decision.
The new born VAT is a favored and blessed child of the priests;they will not cursed it with the affliction of multiple committees and the perdition of stunted growth and take off like the minimum wage.
— Senator Shehu Sani (@ShehuSani) September 12, 2019
FG increases VAT from 5% to 7.2%, in a country with insecurity, poor infrastructures, poor economy, and unpaid new minimum wage signed into law since January, the FG is ready to add more to the suffering of Nigerians by increasing Tax. This is next level of suffering for the poor
— Uncle Ajala (@UNCLE_AJALA) September 12, 2019
To celebrate their victory yesterday, they haff increased VAT to 7.2 percent ???? #PEPT
— Onyi Spare Parts (@onyeka18) September 12, 2019
Most Nigerians are silent on this VAT to 7.2% hike cos they are ignorant of the consequences. Here're a few takes:
*Prices of foodstuffs will shoot up
*Naira value will further reduce
*More money will be available for politicians to loot
*More poverty & miseries#Buhari #Atiku pic.twitter.com/kiYUsHiLuD— Afri-Sagacity (@afrisagacity) September 12, 2019
https://twitter.com/YoungOtutu/status/1172072160036294656
At 5%, Nigeria has one of the lowest VAT rates in Africa. However, I am not sure that the timing of this proposed increase is the best. People are struggling. For now, it would have been better to widen the tax net and target luxury goods, so that the poor doesn’t suffer more. https://t.co/texmAlOXYz
— Dr. Joe Abah (@DrJoeAbah) September 12, 2019
I stand against the PROPOSED increase of VAT. For your information, it has not been increased yet. It is a proposal by the executive which will have to be debated on the floor of the National Assembly. I will argue against it and I’m sure it will be thrown out.
— Oloye Akin Alabi (@akinalabi) September 12, 2019
I have nothing again increase in VAT, we can’t sustain this economy on 5% tax and ours is one of the lowest in the world. What I have issues with are:
1. Multiple taxation
2. Rent seeking
3. A business environment so tough it doesn’t justify the tax— Oluyomi Ojo (@OluyomiOjo) September 11, 2019
" FEC approved VAT increase to 7% "
Electricity tariff increased
Fuel price increase by 2020
5% charges on every online transaction by 2020
More and more taxes
Less and less accountability and development
" recalibrate, live within your means and damn the poverty "
— nafeeu (@nafeezi) September 11, 2019
https://twitter.com/ayemojubar/status/1172068823186513921
