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VAT increase takes effect from February 1 - FG tells Nigerians
#1
VAT increase takes effect from February 1 - FG tells Nigerians



[Image: 5e21e6e54c445.jpg]


The Minister of Finance, Budget and National Planning, Mrs. Zainab Ahmed on Thursday January 16 announced that the increased Value Added Tax (VAT) from 5 to 7.5 percent will take effect from February 1, 2020.
 
Zainab who disclosed this at the inauguration of the Chairman and Board members of the Federal Inland Revenue Service (FIRS) in Abuja, said the Finance Act which President Buhari signed into law made provisions to support Micro, Small and Medium Enterprises (MSMEs) and soften the effect of the VAT rate increase on companies in a bid to increase employment and boost the economy.
 
She said; 
Quote:“I want to state that one of the key provisions in the finance act 2019 that have elicited a lot of interest is the increase in the VAT from 5% to 7.5%, and to remind us all, the finance bill has made copious provisions to improve the ease of doing business; so we have a category of companies that have turnover of 25% and below that will be paying no taxes at all, and also we have reduced tax rates for companies that have turnover from 25 million to 100 million from 30% to 30%.
“The essence of this is to encourage formalization of businesses from the informal sector and also to encourage businesses to grow and become more productive, thereby increasing employment and also meeting the commitment of Mr. President to remove 100 million Nigerians out of poverty over the next 10 years.
“The effective date for the VAT increase from 5-7.5% will be the 1st of February 2020."
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