Nigerians express disappointment with FG’s VAT increase

Nigerians have expressed their disappointment with the proposed increase in the Valued Added Tax (VAT) rate by the Federal Government.

The Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, had unfolded the government move when she briefed State House correspondents on the outcome of the meeting of the Federal Executive Council presided over by President Muhammadu Buhari on Wednesday.

Ahmed disclosed that the Council approved a proposed increase of VAT from five percent to 7.2 two percent.

However, some financial experts on Thursday said that Value Added Tax (VAT) increment by the Federal Government would further dampen purchasing power of Nigerians.

Dr Suleyman Ndanusa, former Director-General, the Securities and Exchange Commission (SEC), said that companies would suffer if people did not demand goods and services because of VAT increment.

He added: “The timing is quite wrong, at this point in time our economy needs to be helped by policies that would ginger more consumption and more disposable income for masses and the people.”

@youngotutu wrote: “Nigeria 2019: Vat to 7.2%, Tunisia 2018: from 20% to 7%, Ghana in 2017: from 17.5% to 3%, Egypt 2019: Proposed reduction to 5%.

“All over the world economies are cutting down VAT to stimulate economic growth. But the Nigerian govt is doing the opposite because it has no ideas.”

Baba Folarin: “Federal Government increased minimum wage and reduced purchasing power by increasing VAT to 7.2%. I stan, economic Yahoo yahoo.”

Prof Ayemojuba: “Imagine VAT to 7.2% with 30k minimum wage? Sense will be hammered into our heads by force.”