Abuja — The Senate, yesterday asked the Minister of Finance, Zainab Ahmed to educate Nigerians on the proposed increase of Value Added Tax, VAT from five percent to 7.5 percent and its implications.
According to the Senate, the enlightenment has become imperative because Nigerians would specifically want to know the specific items exempted from the tax hike, especially food items.
The Senate said that Nigerians would specifically want to know the specific items exempted from the tax hike, especially food items.
This was disclosed yesterday in Abuja when the Finance Minister appeared before the Senator Solomon Adeola led Senate Committee on Finance at a pre-public hearing briefing.
The Senate said that Nigerians would actually want to react to the VAT hike, just as the Senators urged the minister to embark on public enlightenment on it.
Recall that the Executive arm of government is seeking legislative approval for its proposed Finance Bill 2019, which has passed second reading in the red chamber.
The bill, which is seeking amendments into seven Acts of the federal parliament, which relates to tax, specifically proposes an increment of VAT from five per cent to 7.5 per cent, among others.
On her part, who told the lawmakers that VAT increment exempted basic food items, educational materials and medical supplies, said, "The Finance Bill seeks to align local laws with global best practice by introducing and threshold that protects the most vulnerable from exposure to tax.
"It is also a palliative measure to cushion the impact of an increase in VAT rates on the population."