The Federal Executive Council (FEC), presided over by President Muhammadu Buhari, has approved a hike in the Value Added Tax (VAT).
Here is what Nigerians have to say about the VAT hike
The Federal Government has increased the VAT by 2.2% — from 5% to 7.2%.
In an attmept to boost the country’s fiscal revenue in the country, the government has incresed the VAT from 5% to 7.2%.
Commenting on the increase, Zainab Ahmed, Nigeria’s Finance Minister, Budget & National Planning said, “This is important because the federal government only retains 15% of the VAT, 85% is actually for the states and local government and the state 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,” the Minister said.
The new tax has provoked a public outcry online with VAT to 7.2% currently trending on Twitter with 5,814 tweets and counting.
Here is what Nigerians have to say about the VAT hike:
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