VAT increased to 7.5%, not 7.2% - Minister - Premium Times Nigeria

VAT increased to 7.5%, not 7.2% – Minister

) rate from 5 to 7.5 per cent by the federal government is subject to the review and approval of the National Assembly, the Minister of Finance, Budget and National Planning, Zainab Ahmed, has said.

Mr Abdulahi said early this year the federal government constituted the committee comprising competent and leading economists from both the public and private sectors chaired by the Lagos-based Economist and Managing Director/ Chief Executive Officer of Financial Derivatives Company Limited, Bismack Rewane.

About 85 per cent of the revenue collections expected from the VAT rate increase will go to the subnational governments. The minister said the deficit will be covered with new borrowings by government from foreign and domestic loans as well as other sources. Nigeria’s tax to gross domestic product ratio, Mr Onyekpere said, remained one of the lowest in the world, the county’s VAT rate is one of the lowest in the West African sub-region.

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