News

FG Plans To Increase VAT From 5 To 7.2 Percent

The Federal Government has said that consultations will begin at all levels on the review of the Value Added Tax, (VAT) from 5%  to 7.2%, just as it is ready to begin deductions to recover bailout funds given to states.

Minister of Finance, Zainab Ahmed disclosed this on Wednesday when she spoke with State House correspondents after the maiden Federal Executive Council (FEC) meeting presided over by President Muhammadu Buhari.

“We will begin consultations and consultations will be at various levels in the country. So it includes consultations with the states, with the local governments, with the parliament as well as with the Nigerian public. For the VAT increase to take effect, there has to be an amendment to the VAT Act,” she said.

Angela Davies

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