The following warnings occurred:
Warning [2] Undefined array key "avatartype" - Line: 783 - File: global.php PHP 8.0.30 (Linux)
File Line Function
/global.php 783 errorHandler->error
/showthread.php 26 require_once
Warning [2] Undefined array key "avatartype" - Line: 783 - File: global.php PHP 8.0.30 (Linux)
File Line Function
/global.php 783 errorHandler->error
/showthread.php 26 require_once
Warning [2] Undefined variable $awaitingusers - Line: 16 - File: global.php(844) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/global.php(844) : eval()'d code 16 errorHandler->error
/global.php 844 eval
/showthread.php 26 require_once
Warning [2] Undefined array key "mybb" - Line: 1952 - File: inc/functions.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions.php 1952 errorHandler->error
/inc/functions_indicators.php 41 my_set_array_cookie
/showthread.php 629 mark_thread_read
Warning [2] Undefined property: MyLanguage::$ratings_update_error - Line: 5 - File: showthread.php(732) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(732) : eval()'d code 5 errorHandler->error
/showthread.php 732 eval
Warning [2] Undefined array key "additionalgroups" - Line: 7162 - File: inc/functions.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions.php 7162 errorHandler->error
/inc/functions_user.php 844 is_member
/inc/functions_post.php 406 purgespammer_show
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "profilefield" - Line: 6 - File: inc/functions_post.php(474) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php(474) : eval()'d code 6 errorHandler->error
/inc/functions_post.php 474 eval
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "showimages" - Line: 741 - File: inc/functions_post.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php 741 errorHandler->error
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "showvideos" - Line: 746 - File: inc/functions_post.php PHP 8.0.30 (Linux)
File Line Function
/inc/functions_post.php 746 errorHandler->error
/showthread.php 1070 build_postbit
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "threadprefix" - Line: 4 - File: showthread.php(1168) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1168) : eval()'d code 4 errorHandler->error
/showthread.php 1168 eval
Warning [2] Undefined array key "invisible" - Line: 1506 - File: showthread.php PHP 8.0.30 (Linux)
File Line Function
/showthread.php 1506 errorHandler->error
Warning [2] Undefined variable $threadnotesbox - Line: 30 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 30 errorHandler->error
/showthread.php 1533 eval
Warning [2] Undefined variable $addremovesubscription - Line: 79 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 79 errorHandler->error
/showthread.php 1533 eval
Warning [2] Undefined variable $forumjump - Line: 86 - File: showthread.php(1533) : eval()'d code PHP 8.0.30 (Linux)
File Line Function
/showthread.php(1533) : eval()'d code 86 errorHandler->error
/showthread.php 1533 eval



Guest Join UsHey Guest,
Welcome, Join our awesome community where you can discuss on various topics :-
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Some point about your community
Much More.. or Create an Account


{myadvertisements[zone_1]}
Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
VAT increase to generate additional N479.7b revenues
#1

VAT increase to generate additional N479.7b revenues
•Implementation may exceed 2020 timeline


[img=25x0]https://secure.gravatar.com/avatar/9060f7b83d3679ac99ee217edd86e3f6?s=80&d=mm&r=g[/img] 
 
 September 16, 2019


[/url][Image: Fowler.jpeg]
[url=https://thenationonlineng.net/wp-content/uploads/2019/09/Fowler.jpeg]





The proposed 7.2 per cent Value Added Tax (VAT) proposal by the Federal Executive Council (FEC) is expected to generate additional N479.7 billion in revenues based on the N1.1 trillion collected in 2018, analysts at Afrinvest West Africa, have said.

They explained that based on the sharing formula, the Federal Government is to receive additional N72 billion (15 per cent), states to receive N239.8 billion (50 per cent) and local governments to get N167.9 billion (35 per cent) upon implementation.

“While the states would receive a significant boost, the increase is unlikely to make a dent on Federal Govern-ment’s fiscal deficit which we estimate at N3.4 trillion in 2019. We believe the Federal Government requires a significant revenue boost, which would come elsewhere. Our analysis shows that removing petrol subsidies and adopting a market reflective exchange rate of N360/$1 for the computation of oil receipts would increase Federal Government’s revenue by N880 billion,” they said.

They added that the new VAT rate will also help government in the payment of the N30,000 per month minimum wage for workers.


The Federal Executive Council (FEC) recently approved an increase in the Value Added Tax (VAT) rate to 7.2 per cent from the initial five per cent established since January 1, 1994.

The analysts said the timeline for the implementation of the new rate is unclear, but the Minister of Finance, Budget and National Planning hinted at 2020. As there are plans for wide consultation and amendment to the existing VAT Act, implementation may take longer than expected.

They said the increase in VAT rate is  not surprising as governments have been keen but civil protests have led to reluctance despite Nigeria’s low VAT rate relative to peer economies.

“Nigeria’s VAT rate at five per cent is the lowest among African peers such as Kenya (16 per cent), South Africa (15 per cent), Egypt (14 per cent) and Ghana (12.5 per cent). Similarly, VAT receipts to Gross Domestic Product (GDP) is only 0.9 per cent of GDP compared with three per cent in Ecowas and Commonwealth countries according to PwC. We note that Nigeria’s effective VAT rate is believed to be significantly higher than the current five per cent due to the difficulty in claiming refunds, the high cost of compliance and non-allowable expenses for input VAT purposes,” the report said.

While we align with the age-long call to boost non-oil revenue, we believe the Federal Government has chosen an easy but less impactful route with the proposed increment in VAT. “The increase should be part of a comprehensive fiscal reform package that would seek to boost collection efficiency, rein in recurrent spending, remove subsidies and widen the tax net,” they added.

According to the former minister of finance, Kemi Adeosun, Lagos and Abuja account for 55 per cent and 20 per cent of VAT revenues respectively, meaning more pressure on consumers in both cities. We suspect that this is due to the large size of the informal economy which governments have been unable to integrate with the formal economy due to issues such as multiplicity of taxes. In the broader economy, we expect the adjustment to VAT to lead to higher consumer prices and in turn inflation. The attendant weakness to consumer spending would also impact growth negatively.
Reply
{myadvertisements[zone_3]}


Possibly Related Threads...
Thread Author Replies Views Last Post
  MTN Nigeria Acquires Additional 800MHZ Spectrum Edoman 0 677 03-13-2021, 09:47 AM
Last Post: Edoman
  FG May Increase VAT Rate By 2.5% In 2021 by IME1 Edoman 0 675 11-16-2020, 11:04 AM
Last Post: Edoman
  Lagos Approves 33% Increase In Pension For State Pensioners Edoman 1 1,083 09-13-2020, 11:59 PM
Last Post: Mueeidkhatri
  Expect 50% Increase In Prices Of Bread - Bakers Tell Nigerians Edoman 1 874 09-13-2020, 11:56 PM
Last Post: Mueeidkhatri
  No Tariff Increase, Buhari Ordered Mass Metering - NERC Edoman 0 690 08-27-2020, 09:26 AM
Last Post: Edoman
  Bread Price Increase Looms As Wheat Cost Rises 33% Edoman 0 817 07-31-2020, 12:53 PM
Last Post: Edoman
  We’ve identified plans to generate N18tn revenue – FG Edoman 0 810 07-24-2020, 12:30 PM
Last Post: Edoman
  Magnum XT – Increase Zero Libido & Sexual Dysfunction! Derinstaid 0 691 07-18-2020, 04:38 PM
Last Post: Derinstaid



Users browsing this thread: 1 Guest(s)

{myadvertisements[zone_2]}

About contripeople

Contripeople forum description.

              Quick Links

              User Links

              Advertise