- The Federal Executive Council which President Buhari presided over on Wednesday September 11, approved the increment of value added tax (VAT) rate from 5 percent to 7.2% percent.
The Minister of finance, budget and national planning, Mrs Zainab Ahmed confirmed the increment at the end of the cabinet meeting. The new rate which will take effect from 2020 is however subject to an amendment of the VAT act of 1994 by the national assembly.
See how Nigerians are reacting to the development below…
Federal Government increased minimum wage and reduced purchasing power by increasing VAT to 7.2%. I stan, economic Yahoo yahoo. pic.twitter.com/VQK9gk3yMl— Baba Folarin (@That_IjebuBadoo) September 12, 2019
To celebrate their victory yesterday, they haff increased VAT to 7.2 percent #PEPT— Onyeka John CFC(Nwa wawa) (@onyeka18) September 12, 2019
To celebrate @Mbuhari’s successful coup, the FEC has raised VAT to 7.2%. I hope the Buharists and APC apologists are exempted from this new tax regime and all other evils that is to come. https://t.co/VqLzXVol7i— Oke Umurhohwo (@OkeStalyf) September 12, 2019
Imagine an investor buys Nigeria off, and FG gave everybody a share of the money to leave Nigeria.Which Country would you migrate to? VAT TO 7.2%— † (@Cute_Hoelodo) September 12, 2019
The only solution the govt of Buhari has to the economic challenges is to increase VAT to 7.2%.That’s almost 50% increase from initial 5%.Do not also forget they are still planning to tax online transactions by 2020.This is what you get when you have a Buhari as President.— Tosin Olugbenga (@TosinOlugbenga) September 12, 2019
By increasing the VAT to 7.2%, the federal government is adding salts and insult to the wounds of poor Nigerians pic.twitter.com/d6dnKP7U29— Xxxclusivecollections (@xxxclusivewears) September 12, 2019
Nig with none of the basic amenities & no incentives for SME ar increasing VAT to 7.2% as if it isn’t enough that for a business to thrive in Nigeria, the business owner, must provide all the amenities he needs for himself.I say no to increment of VAT to 7.2% #pointofview pic.twitter.com/YkM4MRy0pG— Pecky (@PeckyOfficial) September 12, 2019
FG increases VAT to 7.2% but are yet to implement minimum wage since 652 BC.Nigerians: pic.twitter.com/BiUKvUempb pic.twitter.com/FGhTPsocwt— Nsisong Michael #bbnaija (@michael_nsisong) September 12, 2019
Quick thoughts about the proposed increase in VAT to 7.2%This is low compared the rest of Africa/worldOther countries in Africa are atGhana 15%Egypt 14%South Africa 15%Rwanda 18%Kenya 16%There is also a 5% consumption tax in Lagos, which takes Lagos to 12.5%— Tunji Andrews (@TunjiAndrews) September 12, 2019Most Nigerians are silent on this VAT to 7.2% hike cos they are ignorant of the consequences. Here’re a few takes:*Prices of foodstuffs will shoot up*Naira value will further reduce*More money will be available for politicians to loot*More poverty & miseries#Buhari #Atiku pic.twitter.com/kiYUsHiLuD— Afri-Sagacity (@afrisagacity) September 12, 2019
I stand against the PROPOSED increase of VAT.For your information,it has not been increased yet. It is a proposal by the executive which will have to be debated on the floor of the National Assembly.I will argue against it&I’m sure it will be thrown out. – @akinalabiVAT to 7.2%— Tosin Olugbenga (@TosinOlugbenga) September 12, 2019Instead of increasing VAT to 7.2%,cut down government unnecessary expenditure, reduce security vote.— Obinna Ehumadu (@maziobiehumadu) September 12, 2019.