The federal government has recently increased the value added tax (VAT) from 5% to 7.5%. The increase in VAT has continued to generate uproar and mixed reaction in the country. The organised labour and some economy experts have condemned the move in strong term and described the increase as untimely aimed at inflicting more pains to the lives of poverty ravaged Nigerians. The N.L.C stated that, the increase in VAT while government is still negotiating the minimum wage will not augur well to welfare of Nigerians workers. The VAT will end up eating the much talked minimum wage and erode the expected gains that might arise from the implementation. If the VAT is adjusted and assented by the national assembly, Nigerians next year are going to pay more for the goods and services they will consume. The Nigerian rent-seeking economy has continued to nosedive due to the uncertainty or volatile in the global oil market. The market price of crude oil which constituted 90 percent of the country’s revenue has continued to hover around, affecting the successful implementation of our budget.
Let Us Talk About VAT Increase
- Ibrahim Mustapha
- September 18, 2019
- 12:54 pm
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