The Minister of Finance, Mrs Zainab Ahmed has said that the proposed increase in Value-Added Tax from 5 to 7.5 per cent will be more beneficial to state governments and Local Government Areas in the country, many of which are already facing difficult conditions.
According to Mrs Ahmed, the proposal is subject to legislative intervention by the National Assembly who will have to amend the Revenue Act to reflect the proposed increase.“The benefit of an increase in VAT is, therefore, more beneficial to state governments and Local Government Areas in the country, many of which are already facing difficult conditions. The proposed increase in VAT is therefore expected to create additional fiscal space.
“The existing VAT Act exempts the basic necessities such as food, medicines and education which therefore minimises the impact on the poor and vulnerable segments of the Nigerian society from the burden thereof. It is expected that the exemptions will be maintained in the amended Act.”Mrs Ahmed maintained that if the increase is correctly implemented, it could bring in huge revenues for the country and reduce fiscal deficit burden.
“The government’s borrowing programme could then ease and certainly the financially affected states and local governments could later focus on issues like poverty reduction, healthcare and power generation and transmission.
Is that the only avenue to fund FGN
Where on earth did Buhari got this kind of Minister from? I guess the Minister must have sworn affidavit.
It will increase construction cost n production cost
Naa today? Story.
Into the pocket of few while the masses suffer.... May God punish all of u that want to give us hardship in this country and yet u guys collect hardship allowance
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