Nigeria’s Vice President, Yemi Osinbajo, has said that the
7.5 per cent value-added tax in the country, remains the lowest in Africa.
The federal government increased VAT from 5% to 7.5% from
February 1, 2020.
Speaking in Lafia, the Nasarawa State capital, Osinbajo
explained that no payment of VAT on food, drugs and educational items.
The Vice President stated this in Lafia during the launching
of the national micro, small and medium enterprises clinics for viable
enterprises.
“The new value-added tax which has gone up from 5% to 7.5%,
many people have said it is higher tax burden on the consumers and of course it
has implications for those who are trading as well.
“But we must remember that this is the lowest VAT rate in
the whole of Africa; Ghana VAT rate was 15%, they reduce it to 12.5%, ours is
7.5%.
“It is also important to mention that companies and MSME
with low turnover of less than N25m do not have to register for VAT and as a
result of this, government has worked out a way of not creating any extra
burden for small and medium-size companies.
“In other to reduce the impact of VAT increase on consumers,
several basic items such as food, drugs and educational items are exempted from
VAT, so there is no payment of VAT on food, drugs and educational items,” he
said.
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Still the fakest government,you haven't appropriated the 5% and give lucid account
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