Nigerian Senate has finally approved an increase in the value-added tax (VAT) rate from 5% to 7.5% in a bid to help the government pay for its swelling wage bill.
KanyiDaily recalls that 2 months ago, President Muhammadu Buhari approved the increment of value-added tax rate from 5 percent to 7.5% percent in a bid to increase government revenues.
The Minister of finance, budget and national planning, Mrs. Zainab Ahmed, who confirmed the increment, said the new rate will not be implemented immediately until the act was reviewed by the national assembly.
On Thursday, November 21, 2019, the National Assembly finally endorsed the Federal Government’s proposed Value-Added Tax increment from 5% to 7.5% as they passed the Finance Bill.
According to Punch, the bill clearly seeks an increase of value-added tax from 5 percent to 7.5 percent, increment in the Companies Income tax, Customs and excise, Petroleum Profit Tax, Stamp duties, personal income tax and Capital Income tax.
Minority Leader, Enyinnaya Abaribe, and other senators, including Ifeanyi Ubah, Gabriel Suswan and Abba Moro, however, raised objections to the bill, with claims that the increment in taxes would further compound the sufferings and pains of Nigerians.