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7.5% VAT increase to take effect from February 1

7.5% VAT increase to take effect from February 1

Doris Ukaonu
7.5% VAT increase to take effect from February 1

The 7.5 per cent Value Added Tax implemented by the Federal Government under the finance law will take effect on Saturday,  February 1. 

The announcement was confirmed by the Minister of Finance, Zainab Ahmed, during the inauguration of the board of the Federal Inland Revenue Service.

This comes after the completion of the gazetting of the Act by the Federal Ministry of Justice.

The 7.5% VAT increase was included in the 2019 tax reforms. It will be implemented to assist the government in revenue projections for 2020. 

As soon as the bill is signed, Ahmed noted that it will take effect immediately, adding that it will generate more revenue for departments like health, education and critical infrastructure.

She said, “The implementation of Value Added Tax is to take effect from February 1, 2020, after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice.”

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7.5% VAT increase to take effect from February 1

This clarification from the Minister of Finance contradicts that of Ahmed Idris, the Accountant General of the Federal Republic, who had announced initially that the new VAT increment, took effect since January 13, 2020, when the finance bill was signed into law.

 

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