Fg increase VAT by 2020 ex finance minister.

Mrs Zainab Ahmed, former minister of finance, says the federal govt is planning to increase VAT from the current five percent to 7.5 percent by 2020 – The development comes amidst reports that the government is seeking to shore up falling revenue – Ahmed said the government had developed a strategic revenue growth initiative which was being implemented.

The federal government is planning to increase the rate of value-added tax to 7.5 percent from the current five percent by 2020, says the former finance minister, Mrs Zainab Ahmed. The ex minister made the disclosure on Tuesday, June 25 at the Bloomberg Emerging & Frontier Forum in London, ThisDay reports. The development comes as Bloomberg reported that the government is seeking to shore up falling revenue. Nigerians had previously opposed earlier plans by the federal government to increase VAT. Ahmed, whose tenure ended with President Muhammadu Buhari’s first term on May 29, said that her main preoccupation while in office was how to raise government’s revenue with only 55 percent of targets being met. She said: “We have developed a strategic revenue growth initiative, which we have started to implement. “Our target is to increase revenue to 65 percent minimum in 2019 so that in the next three years we are able to attain 80-85 percent of our revenue target.” Recall that Legit.ng previously reported that the Federal Inland Revenue Service (FIRS) on Wednesday, March 20, refuted reports of a planned increment of Value Added Tax (VAT) by 50 percent to meet up payment of the newly proposed minimum wage. The head, Communication and Servicom Department, Wahab Gbadamosi, made this known in a statement in Abuja. He said that contrary to reports in the media, the FIRS chairman called for a reduction in Companies Income Tax (CIT) rate for small businesses so as to improve compliance.


Source: Legit