Nigeria: 2020 Budget - Buhari Exempts More Items From VAT

President Muhammadu Buhari presents national budget (file photo).

President Muhammadu Buhari on Tuesday announced new items that would be exempted from the value-added tax.

The items include pharmaceuticals, educational items and basic food commodities. The government had presented an executive bill to the National Assembly seeking to raise VAT by 50 per cent to 7.5 per cent.

Presenting the 2020 budget to the joint session of the National Assembly in Abuja, the president said the 2020 Appropriation Bill is based on the new VAT rate.

However, the president said the list of items exempted from the VAT would be expanded to cover items covered under Section 46 of the Finance Bill, 2019.

The new exempted items include brown and white bread; cereals, including maize, rice, wheat, millet, barley and sorghum; fish of all kinds; flour and starch meals; fruits, nuts, pulses and vegetables of various kinds.

Others are roots, such as yam, cocoyam, sweet and Irish potatoes; meat and poultry products, including eggs; milk; salt and herbs of various kinds and natural water and table water.

The president said the government is also proposing an increase of the threshold for VAT registration to N25 million in turnover per annum.

The decision to raise the threshold, he said, is to help the revenue authorities focus their compliance efforts on larger businesses, to bring relief for the micro, small and medium-sized businesses.

The president said additional revenues to be raised from the increased VAT would be used to fund health, education and infrastructure programmes.

"As the States and Local Governments are allocated 85% of all VAT revenues, we expect to see greater quality and efficiency in their spending in these areas as well, the President said.

See What Everyone is Watching

More From: Premium Times

Don't Miss

AllAfrica publishes around 800 reports a day from more than 140 news organizations and over 500 other institutions and individuals, representing a diversity of positions on every topic. We publish news and views ranging from vigorous opponents of governments to government publications and spokespersons. Publishers named above each report are responsible for their own content, which AllAfrica does not have the legal right to edit or correct.

Articles and commentaries that identify allAfrica.com as the publisher are produced or commissioned by AllAfrica. To address comments or complaints, please Contact us.