Finance Act 2019: 20 Basic Food Items And Sanitary Pads Make VAT Exemption List

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Finance Act 2019: 20 Basic Food Items And Sanitary Pads Make VAT Exemption List.

In a bid to ensure that the cost of living does not rise for Nigerians because of the changes in the Value-Added Tax, several basic food items, locally manufactured sanitary towels, pads and tuition relating to nursery, primary, secondary and tertiary education have been added to the exemption list of goods and services on the VAT under the Finance Bill 2019, signed by President Muhammadu Buhari last week, on the 13th January 2020.

Supporting Micro, Small and Medium-sized businesses in line with the administration’s Ease of Doing Business Reforms;The new Act is the first legislation created to accompany an Appropriation Act since the return of democracy in 1999.To allay fears that low-income persons and companies will be marginalized by the new law, reduce the burden of taxation on vulnerable segments, and promote equitable taxation, the Finance Act 2019 has extended the list of goods and services exempted from VAT.

Under Nigeria’s revenue sharing formula, 85% of collected VAT goes to States and Local Governments. This means that the bulk of additional VAT revenues accruing from the increase will go towards enabling States and Local Governments meet their obligations to citizens, including the new minimum wage as already noted by State Governors. Before now, the Buhari administration had firmly resisted previous suggestions to raise VAT.

 

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Baby steps..Encouraging at the least

That won’t reduce or affect the price. When you are done by 2023 you all can go and retire back at home and enjoy your loot.

Next level of poverty.... Mister vice president of Nigeria...!!!

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Presidency lists items exempted from VAT by Finance ActNew law also promotes fiscal equity & supports MSMES. Cost of things maybe very high after now, but we just need to buckle up and face the challenge
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