Business Federal government begins implementation of 7.5 percent VAT – TODAY

[Nigeria Business News]

The Federal Inland Revenue Service has warned businesses and individuals against tax evasion as the Federal Government begins the implementation of the 7.5 per cent Value Added Tax on Saturday (today).

The VAT increase which is meant to help government achieve its revenue projections for the 2020 budget is …



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[Kíríjí]

Increasing the VAT rate to 7.5% is not the most economically p efficient option. The best option could have been to make the economic environment attractive for creation of new industries and expansion of the existing ones so that govt can have increased numbers of companies and volumes to tax.
The increased rate will reduce the aggregate consumers demand and consequently less revenue to the govt.
A wise govt will not just be a copy cat of tax rate without considering its own economic and infrastructural peculiarities.