Nigerians Condemn FG’s Increment Of VAT To 7.2 Percent
The proposed increment ofValue 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.