Business
Govt to raise VAT
With the decline in government revenue due to falling crude oil prices, the Federal Inland Revenue Service (FIRS) says that government plans to increase the percentage collectable on Value Added Tax (VAT) to shore up its finances.
According to the acting executive chairman of the FIRS, Sunday Ogungbesan, government after consultation with stakeholders, plans to increase VAT to 10 per cent.
He told newsmen, that “The plan is to increase to 10 per cent this year but we have to consult first with relevant stakeholders”.
Nigeria depends on crude exports for about 70 per cent of government revenue and more than 90 percent of foreign exchange. The price of Brent crude has dropped by more than half since peaking in June last year.
Read also: Nigeria may lose $36bn oil revenue
Ogungbesan said, the FIRS will put more effort in meeting targets after its collection of N1.97 trillion ($9.9bn) in revenue in the first half fell short of a goal of N2.29 trillion.
“If we achieve our revenue targets, to a great extent, government deficits will be reduced. Our plan is to bring every business into the tax net; this economy can survive outside oil,” he noted.
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