They spoke in response to the signing of the Finance Bill into law by the President, Major General Muhammadu Buhari in Abuja.The Nigeria Employers’ Consultative Association warned the government against seeing the private sector as a cash cow in its drive to increase revenue.
“The common man will definitely be at the receiving end of the increase in VAT. Even if businesses are taxed more through likely illegal levies and rates outside the provisions of the law, they will naturally pass the cost to the customers whose purchasing power is already at the lowest ebb. The new law amended the Petroleum Profit Tax Act, Customs and Excise Tariff Act, Company Income Tax Act, Personal Income Tax Act, Value Added Tax, Stamp Duties Act and the Capital Gains Tax.
“Already businesses have been grappling with multiple taxation, high import duty, high regulatory charges, exclusion from the official forex market and high energy cost. The Federal Executive Council had approved 7.2 per cent new VAT rate on September 10, 2019, while Buhari presented the Finance Bill to the National Assembly on October 8 along with the 2020 Appropriation Bill.
“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.”
Which private sector? Those that have over 25million turnover a year? Which one? The one affected by it? Or what... Y do we relish in negativity as a nation?