Presidential aide explains gains of VAT increase
The Presidency has allayed fears that the decision to increase Value Added Tax (VAT) from 5 percent to 7.5 percent would worsen citizens’ plight.
Senior Assistant to the President on National Assembly matters (House of Representatives), Mr. Umar Ibrahim el-Yakub, told The Guardian the measure would rather serve the best interest of Nigerians.He said: “As you heard the President said, most of the money would be going to state governments. The President read out the list of items exempted from the VAT increment and certainly, those areas are essentially food, medicine, education and healthcare. I believe it would not worsen the plight of the ordinary Nigerian, considering that revenue generated would be invested in infrastructure..
“The draft Finance Bill being considered by the National Assembly proposes an increase of the VAT rate from 5 percent to 7.5 percent. As such, the 2020 Appropriation Bill is based on this new VAT rate. Additional revenues will be used to fund health, education and infrastructure programmes.
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