Monday, May 20, 2024

7.5 per cent increase in VAT remains lowest in Africa – Osinbajo

Nigeria’s Vice President, Yemi Osinbajo, has said that the 7.5 per cent value-added tax in the country, remains the lowest in Africa.

The federal government increased VAT from 5% to 7.5% from February 1, 2020.

Speaking in Lafia, the Nasarawa State capital, Osinbajo explained that no payment of VAT on food, drugs and educational items.

Advertisement

The Vice President stated this in Lafia during the launching of the national micro, small and medium enterprises clinics for viable enterprises.

“The new value-added tax which has gone up from 5% to 7.5%, many people have said it is higher tax burden on the consumers and of course it has implications for those who are trading as well.

“But we must remember that this is the lowest VAT rate in the whole of Africa; Ghana VAT rate was 15%, they reduce it to 12.5%, ours is 7.5%.

Advertisement

“It is also important to mention that companies and MSME with low turnover of less than N25m do not have to register for VAT and as a result of this, government has worked out a way of not creating any extra burden for small and medium-size companies.

“In other to reduce the impact of VAT increase on consumers, several basic items such as food, drugs and educational items are exempted from VAT, so there is no payment of VAT on food, drugs and educational items,” he said.

signaturetv.org/dailypost/IJM

Signature TV
Signature TVhttps://signaturetv.isitedigitals.com
Signature TV is a multi-media company, owners and operators of signaturetv.org and producers of The Signature Show on AIT and Corruption Tori. Our programmes are broadcast on the AIT Network and on Seven NTA stations across the country. We are content providers for a number of television networks and some State TV stations, with a respected 24/7, high online and offline followership. We are also Communications/Media Consultants to MacArthur Foundation, Ford Foundation and OSIWA.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here
Captcha verification failed!
CAPTCHA user score failed. Please contact us!

Latest Articles