VAT is an indirect consumption tax, under the tax act of 1993, managed by FIRS. It is a multi-stage tax(all stages of production) imposed on goods ame services and are borne by the final consumer. Nigeria and Eriteria has the lowest VAT at a single digit of 5%. Exported services; medical and pharm produbts; basic food items; baby products are among VAT exempted items. During the FEC meeting of Sept 11 2019, the need to increase goverment revenue led to the creation of Strategic Revenue Growth Initiative, which iniatiated the 7.5%increase.
Objectives of the bill:
(a)promote fisical equality by mitigating instances of regressive taxation;
(b)reforming domestic tax laws to align with foerign best practices;
(c)introduce tax incentives for investment in infrastructure and capital market;
(d)support micro, small and meduim size busniess and
(e)raise revenue for goverment.

Contd...
Section 46 of the drafted finace bill 2019 expands the exempted items to include:
(a)brown & white bread
(b)ceareals including: maize, rice, wheat, millet, barley and sorghum
(c)fish of all kinds
(d)flour and starch meals
(e)fruits, nuts, pulses &vegetable of various kinds
(f)roots such as cocoyam, yam, sweet &irish potatoe
(g)meat & poultry products including egg
(h)milk
(i)salt & herbs of various kinds and
(j)natural water and table water.
Intrestingly this bill exempts MSMEs from VAT registration. It pegs VAT registration below 25million in turn over per year, to allow revenue authorities to focus on compliance from larger busnieses.
What do you think abnut this proposed bill, given this information.