President Muhammed on Monday signed the finance bill that the National Assembly passed in November 2019 into law.
The law has however drawn a lot of mixed reactions from Nigerians, especially about the increment of Value Added Tax (VAT) from 5% to 7.5%.
While explaining the reason for the increment, Nigeria’s Minister of Finance, Zainab Ahmed, had stated that the move is to make more money available to the government.
She added that the finance bill is particularly to help the state governments to enable them to pay workers the newly approved N30,000 minimum wage.
The bill was submitted to the national assembly alongside the budget but the bill signing is coming 27 days after the 2020 budget was signed into law on December 17.
Buhari’s signing of the Act at the State House, Abuja, empowers the federal government to collect the sales tax, which proceeds will be shared by the three tiers of government.
See reactions below:
Average VAT rate in most European counties is around 20-25%. You might argue that Nigeria is different. But 7.5% VAT in Nigeria is great. It helps government raise revenue needed for infrastructure. Accountability and judicious use of raised VAT is another issue entirely.
— Dr. Dípò Awójídé (@OgbeniDipo) January 14, 2020
3 THINGS D@ MUST HAPPEN WITH D NEW 7.5 VAT.
— chinanu Ndumele CN (@CN4real) January 14, 2020
1, Politicians will’ve more money to loot.
2, Companies will increase d prices of commodities & services 2 recoup d new VAT.
3,There’ll be more suffering 4 d governed.
FACT: Taxes are meant 4 d rich but it’s d poor, who pay it.
Everytime that the government trends one new unfavourable policy or the other, you would see some people compare us to other developed countries. Give us constant electricity, good roads, good drainage system, health and education sector. Then you can charge your 7.5% vat!
— God’s Daughter (@jagzangel) January 14, 2020
7.5% VAT…. More hardship for Nigerians…
— the Morris Monye factor (@Morris_Monye) January 14, 2020
On top your small salary. Family and living wage(which is the wage needed for a family or individual to survive on) will skyrocket.
Your salaries will not increase to accommodate it…
7.5% VAT increment is really not a problem assuming the motive behind it is right.
— Wale Adetona (@iSlimfit) January 14, 2020
What has become of all the ‘revenues’ raised by the government since inception?
Is there any evidence of a positive effect of the proceeds on the common man?
E go better is still our slogan.
How the 7.5% VAT will affect Nigerian business owners. The finance bill is has been broken down for easy understanding. *Swipe*
— Facts NG (@NgFacts) January 14, 2020
Source – @accountinghub_ pic.twitter.com/PNW6U5cpaf
FACT: The new 7.5% VAT bill is not meant for the vulnerable lower class but for middle and upper class, companies that make between 0-25m are NOT affected but the big companies from 25m and above are the ones to pay VAT. get enlightened.
— KennySax (@kennysax2) January 14, 2020
7.5% VAT in plain language.
— World Billionaire (@caramelskin5) January 14, 2020
1. Government has decided to reduce your disposable income.
2. Govt has decided to make you refund looted funds indirectly
3. You’re funding govt but can’t ask how they spend the money
4. You’re funding their lifestyle n they’ll still oppress you
