Contrary to the earlier information of a proposed 7.2percent Value Added Tax (VAT) increment, the Federal Government has clarified that it proposed 7.5% increase.
The Special Adviser, Media and Communications, to the Minister of Finance, Budget and National Planning, Mr. Yunusa Tanko Abdullahi, said in a statement that the proposed VAT increase “from 5 percent to 7.5 percent is sequel to the recommendation of the Presidential technical advisory committee.”
He said that the increase, if correctly implemented, could bring in huge revenues, which would actually reduce the fiscal deficit burden.
He explained that the Federal Government had earlier in the year set up a technical advisory committee comprising competent and leading economists from both public and private sectors chaired by an Economist, Mr. Bismack Rewane.
