Everything You Buy is About to Get More Expensive as Nigerian Government plans VAT Increase
Just when we were trying to get our heads around the newly introduced stamp duty, there are strong indications that VAT will increase.
CCTV Africa
reports; Nigeria’s government is considering changes to the tax regime
as part of efforts to overcome the crisis brought on by falling oil
prices. Vice President Yemi Osinbajo said that the government is looking at increasing tax coverage.
The
government plans to increase value-added tax from 5 percent, which is
among the world’s lowest VAT rates, and broadening the tax base.
Osinbajo said that at present they were only collecting just about 20
percent of the potential tax.
The
sharp drop in crude revenues, which provide 95 percent of foreign
earnings, has led to the Naira hitting record lows on the parallel
market as foreign exchange reserves dwindle. Finance Minister Kemi Adeosun
last week announced plans to borrow up to $5 billion from multiple
sources, including the Eurobond market, to plug its budget deficit.
0 comments:
Post a Comment