Brace up for increase in VAT - FIRS to Nigerians

Brace up for increase in VAT - FIRS to Nigerians

- Nigeria's VAT will increase soon, the Federal Inland Revenue Service has said

- This is coming on the heels of the National Assembly’s approval of the N30,000 minimum wage

The Federal Inland Revenue Service (FIRS), on Tuesday, March 19, urged Nigerians to brace for an increase in Value Added Tax (VAT) by between 35 and 50 per cent in 2019.

This will raise the VAT from the current five per cent to between 6.75 and 7.25 per cent.

The chairman of FIRS, Babatunde Fowler, dropped the hint when he appeared alongside other top officials in the Federal Ministry of Finance before the Senate Committee on Finance in Abuja.

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He said the impending VAT increase was one of the areas being looked at by FIRS to meet its 2019 revenue generation target of N8 trillion.

The News Agency of Nigeria reports that the officials appeared before the committee to give details of the 2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper.

Fowler’s announcement came shortly after the Senate passed the National Minimum Wage Act (Amendment) Bill in which it approved N30,000 as the new minimum wage for the workers in the country.

Legit.ng had reported that the Nigerian Senate on Tuesday, March 19, approved the N30,000 minimum wage being agitated for by Nigerian workers under the umbrella of the organised labour in the country.

The approval of the minimum wage by the Senate followed the report of an ad-hoc committee it set up to look into the issue.

The ad-hoc committee is headed by Senator Francis Alimikhena.

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After the passage, the Senate asked the federal government to send a supplementary budget that would cover the new wage structure for consideration.

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Minimum Wage: Is N30,000 Too Much for FG to Pay Workers? - Nigeria Street Gist | Legit TV

Source: Legit.ng

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