Nigeria VAT Increases from 5% to 7.5% by 2020
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Nigerians to pay more for goods and services over proposed VAT increase. This means that Nigerians may have to pay more for goods and services. This is the fall out of the declaration by President Muhammadu Buhari that the Federal Government will increase Value Added Tax (VAT) by between 35 and 50 per cent. Therefore, Nigeria VAT Increases from 5% to 7.5% by 2020.
Chairman of FIRS Speaks:
Completefmc gathered that, Babatunde Fowler, the chairman of Federal Inland Revenue Service (FIRS), dropped the hint when he appeared alongside other top officials in the Federal Ministry of Finance before the Senate Committee on Finance in Abuja, to give details of the 2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper.
Senate May Approve VAT Increase:
As a matter of fact, if the Senate approves the proposal, VAT will rise from the current five per cent to between 6.75 and 7.25 per cent, with implications for rise in prices of goods and services, spiking inflation and depressing consumer spending.
Nigeria VAT Increases from 5% to 7.5% by 2020
Already, operators in the organised private sector re worried that the proposed increase, expected to come into effect before the end of 2019, will further affect the economy that has been described as struggling. In fact, firms will certainly explore measures to transfer costs to consumers.
Nigeria generated N4.59tn from VAT in just 5 years. So, VAT is responsible for significant growth in Nigeria’s revenue. And now, Nigerian tax authority is considering an upward review of VAT. Currently, Nigerian government is charging 5% standard VAT rate on VATable goods and services.
VAT Accounting Processes:
Get your tax matters sorted out for you by Complete Full Marks Consultants Limited. A good understanding of VAT record management will help you a lot. VAT payment = Output VAT less Input VAT. If your records don’t generate all of these variables, you will hve to pay more. For assistance at minimal fee call +234 8034347851 or email [email protected].
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Deacon Anekperechi Nworgu, a seasoned economist who transitioned into a chartered accountant, auditor, tax practitioner, and business consultant, brings with him a wealth of industry expertise spanning over 37 years.
