—Plans are underway by the Federal Government to increase Value Added Tax, VAT, by up to 50 per cent , a move that would stoke-up inflationary pressure in the economy.
These were disclosed, yesterday, when Minister of Budget and National Planning, Udoma Udo Udoma, and Executive Chairman, Federal Inland Revenue Service, FIRS, Babatunde Fowler, appeared before the Senate Committee on Finance for an interactive session over 2019 to 2021 Medium Term Expenditure Framework and Fiscal Strategy Paper, MTEF/ FSP.
Fowler particularly told the Senator John Enoh led Committee on Finance that the proposed payable VAT by Nigerians based on the increment would be between 35 per cent and 50 per cent . “I can certainly see an increase in VAT of at least 35 per cent to 50 per cent this year based on our enforcement activities. There, certainly will be an increase in Company Income Tax and also on Petroleum Profit Tax.
“Every five years, it is supposed to be reviewed. It has not been reviewed even though there is no doubt that for both the Federal Government and states; it is a tough time to review wages. But the N18,000 is really too low and it is difficult for people to live on N18,000.“The President supported a revision but it is important that as we are revising , we make sure that it can be funded that is why we set up the Bismark Rewane Technical Committee.
This will be an unwise policy move at this time. Emphasis at this time should be to improve the macroeconomic environment, capacity utilisation in our manufacturing sector, generation of job opportunities and effectiveness of the tax agencies.
You increase vat to raise money to give Govt workers pay rise, what happens to the jobless nigerians are they going to be exampted from paying the increased vat. The next level will be hard to climb o.
For what nah The 5% is very hard to pay and now its 50%. This next level thing is sweet ooh. All of us must taste it not for selected few
Why not cut their monumental allowances instead.
To raise the money is simple... Cut down the cost of governance by placing all the politicians on minimum wage...
It is like taking with the left hand what the workers are given with the right hand.
They have given with right hand and now they wish to collect the collectibles with their left hand.
You can’t give me what I already owned. You can’t take my food and give it back to me and claim to have fed me.
Mr integrity.... Where are thou?
LAZINIESS
How about cuttting cost and waste? 50% increase.......
Watin! You want collect it back with Left hand? There is God.
Very sad... almost 2020 and Nigeria full of all kinds of natural resources buried underground and leaders don't know how to generate money.
I think it's shameful and a disgrace for oil producing country for a $100 minimum wage for workers.
NLC rejected it already ... Very selfish and wickedness that's buhari govt for you. NextEvil!
houseofchameleo see ur govt
France went on 'YELLOW VEST' protest against petroleum tax. We can begin to get government to do our biddings. I know N500 pro-protesters will also carry placard upside down. But let's try and invade, and or engage the government
Pls dnt increase vat pls i beg u otherwise things go go very high.u wan kill us
tobeysmart . as the money they enter baba they vat am. MBuhari
Its a very good measure but we don't believe implementing it at this period is welcomed. bukolasaraki MBuhari NGRPresident NGRSenate SPNigeria THISDAYLIVE channelstv CTVpolitics
Robbing Peter to pay Paul
why they are not talking about reduction in cost of run the government,
Anyone trying to implement this is MAD!!!! Can't they reduce senators and reps salary to make this happen? So called leaders with fish hippopotamus empty brain!!
This is a clear sign that the administration lacks foresight.
you are all mad .. so the new 30k you plan to pay is useless..
The FG has a way of presenting the 'devil's gift.' They increased wage by 40% and increase VAT by 50%.
Instead of increasing value added tax, will it not be fair to increase tax on alcohol, imported wines and co or better still reduce the salaries and allowances of our upper and lower chambers members to fund the new allowances. Why increase Taxes.
It's a welcome development.The FG must find a way to raise money to fund it which I call option 'B'. Option 'A' is for the Honourables(HA) to scrap their constituency funds so that the FG can use it to meet some needs in the country.This we know isn't possible.
Robbing Peter to pay Paul that's all behind the scenes.
We asked for increase in wages from you so as to meet up with the high cost of living, then you accepted & increased our taxes to you. This is just a rigmarole. Not good, unfair & insincere. However, this is the icing of the NEXT LEVEL.
They're going to kill businesses
Where in the world do they pay 50% vat?
Y’all should have told us this one Nah before elections and let’s see if we’ll vote for you guys. But then again it doesn’t affect the “REAL” Nigerians.
Mr integrity and co should have reduced the salaries and allowances of political office holders for this reason and many more! We have a long way to go as a country, so sad!
That's too bad, why would they increase vat when senators and reps are collecting 15m/12m respectively without doing anything good for common men in Nigeria apart from allowances? The problem I got with nlc is that most of them r now politicians
Minimum wage ? And things would be more expensive. Na wa oo
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