12/09/2019
This government is head bent on impoverishing Nigerians. I understand Nigerian VAT rate is low at 5% compared to other vibrant Nations but the government should be sensitive to the economic conditions of her populace. We are struggling with an epileptic economic system where Nigerians provides almost all the basic amenities she enjoys- Power, Water, Roads and Capital. Increasing the VAT by almost 50% will deepen our poverty rate in Nigeria.
VAT is a tax borne by the final consumers ( Nigerian). Invariably this 50% VAT increase is FG just reaping the citizens of their money to accommodate their fat recurrent expenditure budget (Basically their salaries).
Implications:
Increase in general price level in Nigeria (inflation)
Drastic reduction in purchasing power (Poverty)
Possible increase in crimes as a result of frustration (this is certainly expected)
SME's will suffer as a result of impoverished ecosystem.
And the list goes on.
www.achebe.ng. [email protected] 08060518686
The Nigerian government has approved the increase of VAT (value added tax) from the current 5% to 7.2%. This has been expected as we have noted in many articles in Tekedia. Our thesis remains that Nigeria will equilibrate at 10% VAT within the next seven years. Please read this piece where we noted....
