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Buhari’s Minister Reveals Effect Of Proposed VAT Increase On Nigerians

Last updated on September 11th, 2021 at 03:20 pm

Mrs Zainab Ahmed, the Minister of Finance, Budget and National Planning, says the proposed Value Added Tax (VAT) increase will impact more on consumption by urban communities and the wealthier sections of the population.

Ahmed, who said this at the 25th Nigerian Economic Summit in Abuja on Monday, explained that the proposed tax increase would not affect the poor masses as perceived by some people.

The 2019 summit has as its theme: “Nigeria 2050 Shifting Gears”.

“The proposed VAT increase is likely to impact more on consumption by the urban communities and the wealthier sections of the population than on the poor,” she said.

According to Ahmed, her ministry will coordinate its fiscal policies with the Central Bank of Nigeria (CBN)’s current tight monetary policy stance to ensure that the appropriate out turns are achieved in terms of growth, consumption and inflation.

She, however, said that Nigeria’s VAT contribution to the nation’s Gross Domestic Product (GDP) had declined from one per cent between 2010 and 2013, to 0.8 per cent between 2015 and 2018, NAN reports.

Albert Echetah

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