Federal govt commences increment of VAT, reveals new rate, take-off period

The Nigerian government has proposed an increase of the Valued Added Tax, VAT, from 5 percent to 7.2 percent.

Minister of Finance, Mrs. Zainab Ahmed, said this Wednesday while briefing State House correspondents after the Federal Executive Council, FEC, meeting presided over by President Muhammadu Buhari.

Ahmed, however, said that the increase will take effect after the VAT Act is amended by the National Assembly and after consultation with stakeholders such as states, local councils, the private sector among others.

“Our projection is to finish consultations early enough so that it takes effect in 2020.”

The minister also disclosed that the FEC approved the Medium Term Expenditure Framework and Fiscal Strategic Paper, MTEF/FSP for 2020 to 2022, which will guide the 2020 Budget.