Breaking: Senate Approves Increase In VAT From 5% To 7.5%

Senate Approves New VAT Rate

The Nigerian Senate on Thursday, approved the request from President Muhammadu Buhari to increase Value Added Tax (VAT) to 7.5%.

The approval is part of the general amendments in the Finance Bill which seeks to amend seven Acts of the National Assembly relating to taxes payable in the country.

Naija News reports specifically, the aspect of the bill seeks an increment of the value-added tax from five per cent to 7.5 per cent.

Other areas affected by the bill are the Companies Income tax, Customs and excise, Petroleum Profit Tax, Stamp duties, personal income tax and Capital Income tax.

It is understood however that some Senators opposed the passage of the bill, noting that it will increase the sufferings and pains of Nigerians.

Those who opposed the bill include Senate Minority Leader, Enyinnaya Abaribe, and Senators Ifeanyi Ubah, Gabriel Suswan and Abba Moro.

This online medium, however recalls that the Minister of Finance, Zainab Ahmed had previously stated that the increase in VAT is targeted at making more funds available to the state governments for project implementation and specifically for the payment of the newly approved N30,000 minimum wage to workers.