The federal executive council (FEC) has approved an increase in value added tax (VAT) rate from 5% to 7.2%.

Zainab Ahmed, minister of finance, budget and national planning, disclosed this to state house correspondents at the end of the cabinet meeting on Wednesday.

However, this is subject to an amendment of the VAT act of 1994 by the national assembly.

VAT replaced the sales tax in 1994 and was pegged at 5% by the military government of Sani Abacha.

In 2007, former president Olusegun Obasanjo increased VAT to 10% on the eve of his departure from office but it was reversed by his successor, Umaru Musa Yar’Adua, following opposition from labour.

Wednesday’s FEC meeting, which started at 11am and ended at 6:12pm, was presided over by President Muhammadu Buhari.

Ahmed said FEC directed immediate consultations with states, local governments and other relevant stakeholders before the new rate takes effect in 2020.

https://www.thecable.ng/breaking-fec-approves-increase-in-vat-to-7

https://www.thecable.ng/breaking-fec-approves-increase-in-vat-to-7

Hardship upon hardship

I promise, i wouldn't say anything.

OK now

2020 go tough oh! More expenditure in all angles. Online purchase VAT, increment in electricity tariff, increase in VAT.

Very useless sets of APC leaders..

Always about increasing the hardship in the land... They Increased fuel price. Has it translated to good roads or even infrastructures?

God will judge all those who worked for the emergence of this good for nothing government