Nigerians react as businesses begin 7.5% VAT rate

Nigerians react as businesses begin 7.5% VAT rate

- Nigerians on social media have been reacting to the new 7.5% VAT rate

- VAT is a consumption tax levied on products at every point of sale where value has been added

- Social media is awash with complains about the new initiative by the Muhammadu Buhari administration

The implementation of the 7.5% value-added tax (VAT) rate under the new Finance Act, an initiative of the Buhari administration, has commenced.

Already, commercial banks, malls, stores, telecommunication companies, and government agencies have notified their customers of the new government policy.

The new VAT rate is expected to shore up federal government revenue and it is expected to fund health and education sectors as well as infrastructure projects.

Nigerians have been reacting to the new policy as it is currently the number one trending topic on micro-blogging site, Twitter.

Mayowa Olaniyan wrote: If VAT in a smaller country like Ghana could go for as high as 12.5%, I see no reason why Nigerians will fume over 7.5% VAT.

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Olayemi Samuel: 7.5% VAT is something that affects everyone either rich or poor. Nevertheless, nagging on social media won't solve anything.

Fadipe Olamide: Why is there no outrage on this? When was this directive issued? Why do I have to pay 7.5% VAT on phone calls??

Agunego Kosisochukwu: If only this 7.5% VAT will be used to develop the country, but all these revenue generated from the poor masses will still be looted by our corrupt officials and also for rehabilitating fake repentant Boko Haram members.

Charles Ozibo: We will trend 7.5%. VAT Today, tomorrow we will adjust to the suffering and pretend like nothing happened.

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The federal government had in September 2019, announced plans to review the VAT through consultations at various levels in the country.

The minister of finance, budget and national planning, Zainab Ahmed, made this known to journalists at the State House after the Federal Executive Council meeting on Wednesday, September 11.

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