The implication of the 50 percent rise in the new consumption tax is that prices of goods are to bear new charges, including transportation fare, and in particular air travel as a result of the correspondent increase in some of the components which would ultimately be transferred to the consumers.
While the Act was given accent by President Muhammadu Buhari late last year, the implementation of the VAT aspect was shifted to February 1, 2020 by the Federal Ministry of Finance, apparently, due to its wider economic implication on the populace, particularly the ordinary Nigerians who are expected to bear the brunt of the 50 per cent rise in the VAT, which is a consumption tax.
Apparently to douse the pains expected on the ordinary citizens, the Federal Government recently elongated the list of VAT-exempted items to apart from basic food items and drugs to include school fees and baby items.Economic experts have thrown their weights behind the new fiscal direction, saying the new law also introduced a bouquets of incentives to boost employment through the grant of tax holiday to micro, small and medium enterprises to enable breathe the air of suffocation.
“Concerning the other gamut of the Finance Act, 2020, it is equally commendable because it affects every sector such as agriculture where companies are granted tax holidays up to five years, and in the MSME sector where firms with turn over below N25 million are now exempted from VAT.
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Source: Daily Trust - 🏆 13. / 51 Read more »