7.5% VAT implementation kicks off February 1, says Minister/ Ahmed

The Minister of Finance, Budget and National Planning, Zainab Ahmed, has disclosed the implementation of the newly approved Value-Added Tax (VAT) rate will take effect as from February 1, 2020.

Ahmed made this known on Thursday at the inauguration of the newly constituted board of the Federal Inland Revenue Board (FIRS).

It would be recalled President Muhammadu Buhari signed the Finance Bill, seeking to increase VAT by 50% into law on Tuesday.

But on Wednesday, the Accountant General of the Federation, Ahmed Idris, stated implementation of the new VAT had started.

“You cannot implement a budget unless the National Assembly passes it and Mr President signs it. So, the decision to increase VAT was debated and members of the public were sensitised and nobody can start deducting that VAT unless the bill is signed,” the AGF had said.

“So I stopped it and asked them to go and recharge at 7.5%. You cannot implement something unless you have the instrument whether administrative or legal for it to be implemented.”

The newly approved rate further stretched the VAT-exempt items to include honey, bread, cereals, cooking oils, culinary herbs, fish. flour, starch, fruits, meat, poultry, milk, nuts, pulses, roots, salt, vegetables, water, sanitary pads, tampons, tertiary, secondary, primary and nursery tuition.


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