FG to increase VAT from 5% to 7.2%

The Federal Government Wednesday proposed an increment of the Valued Added Tax.

The increment will see the VAT rising from 5% to 7.2%.

The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed, revealed this while briefing State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa, Abuja.

The minister said that the increase would commence after the amendment of the VAT Act by the National Assembly, and after consultations with the state and local government areas, as well as the Nigerian populace.

According to her, “Our projection is to finish consultations early enough so that it takes effect in 2020.”

She also said that the FEC approved the Medium Term Expenditure Framework and Fiscal Strategic Paper, MTEF/FSP for 2020 to 2022, which would guide the 2020 Budget.

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