{"id":322083,"date":"2024-05-09T07:48:53","date_gmt":"2024-05-09T06:48:53","guid":{"rendered":"https:\/\/www.withinnigeria.com\/news\/?p=322083"},"modified":"2024-05-09T07:48:53","modified_gmt":"2024-05-09T06:48:53","slug":"presidential-committee-considers-vat-increase","status":"publish","type":"post","link":"https:\/\/www.withinnigeria.com\/news\/2024\/05\/09\/presidential-committee-considers-vat-increase\/","title":{"rendered":"Presidential Committee Considers VAT Increase"},"content":{"rendered":"<ul>\n<li><strong>Presidential Committee proposes VAT rate increase from 7.5%, along with review of revenue sharing formula, amid opposition to new taxes<\/strong><\/li>\n<li><strong>Chairman Oyedele assures that proposed VAT adjustment won&#8217;t burden poor or small businesses, with exemptions for basic necessities<\/strong><\/li>\n<\/ul>\n<hr \/>\n<p>The Presidential Committee on Fiscal Policy and Tax Reforms has proposed an upward adjustment of the Value Added Tax (VAT) rate from the current 7.5 percent, according to reports.<\/p>\n<p>Taiwo Oyedele, the committee&#8217;s chairman, also recommended reviewing the VAT revenue-sharing formula during a policy exposure and impact assessment session organized by the committee.<\/p>\n<p>The proposal comes amidst opposition to various new taxes and levies, including the 0.5 percent cybersecurity levy and stamp duty on mortgage loans. Experts, chambers of commerce, and organized labour have expressed concerns that these measures would impose additional burdens on Nigerians and struggling businesses.<\/p>\n<p>However, <a href=\"https:\/\/www.withinnigeria.com\/news\/2023\/10\/31\/naira-will-regain-value-before-december-2023-oyedele\/\">Oyedele<\/a> sought to allay fears about the potential review, assuring it would not adversely affect the poor and small business owners.<\/p>\n<p>While the exact percentage of the proposed increase was not specified, the current VAT rate stands at 7.5 percent.<\/p>\n<p>In February 2020, the federal government had raised VAT from five percent to 7.5 percent following the passage of the 2020 Finance Act.<\/p>\n<p>Oyedele emphasized, \u201cNigeria\u2019s economy relies heavily on services, and a mere halt at this juncture would significantly affect states&#8217; finances, as VAT collection would plummet by more than 50 percent.\u201d<\/p>\n<p>He continued, \u201cHence, we propose an upward adjustment of the VAT rate. However, we are committed to ensuring that this does not burden businesses. Food, education, medical services, and accommodation would remain exempt from VAT. Therefore, the poor and small businesses would not be affected by VAT.\u201d<\/p>\n<p>He said. \u201cIn 1986, we had sales tax collected by states. The military came up with VAT in 1993 and stopped sales tax, so they said it would collect VAT and return 15 per cent as cost of collection, and that was how the 15 per cent charged today came about. But we think it is too much.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Presidential Committee proposes VAT rate increase from 7.5%, along with review of revenue sharing formula, amid opposition to new taxes Chairman Oyedele assures that proposed VAT adjustment won&#8217;t burden poor or small businesses, with exemptions for basic necessities The Presidential Committee on Fiscal Policy and Tax Reforms has proposed an upward adjustment of the Value [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":322085,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jnews-multi-image_gallery":[],"jnews_single_post":{"source_name":"","source_url":"","via_name":"","via_url":"","override_template":"0","override":[{"template":"2","single_blog_custom":"211693","parallax":"1","fullscreen":"1","layout":"right-sidebar","sidebar":"default-sidebar","second_sidebar":"default-sidebar","sticky_sidebar":"1","share_position":"top","share_float_style":"share-monocrhome","show_share_counter":"1","show_view_counter":"0","show_featured":"1","show_post_meta":"1","show_post_author":"1","show_post_author_image":"1","show_post_date":"1","post_date_format":"default","post_date_format_custom":"Y\/m\/d","show_post_category":"1","show_post_reading_time":"1","post_reading_time_wpm":"300","show_zoom_button":"1","zoom_button_out_step":"2","zoom_button_in_step":"3","show_post_tag":"0","show_prev_next_post":"0","show_popup_post":"0","number_popup_post":"1","show_author_box":"0","show_post_related":"0","show_inline_post_related":"1"}],"override_image_size":"0","image_override":[{"single_post_thumbnail_size":"crop-500","single_post_gallery_size":"crop-500"}],"trending_post":"0","trending_post_position":"meta","trending_post_label":"Trending","sponsored_post":"0","sponsored_post_label":"Sponsored by","sponsored_post_name":"","sponsored_post_url":"","sponsored_post_logo_enable":"0","sponsored_post_logo":"","sponsored_post_desc":"","disable_ad":"0"},"jnews_primary_category":{"id":"","hide":""},"jnews_override_bookmark_settings":{"override_bookmark_button":"0","override_show_bookmark_button":"0"},"jnews_override_counter":{"override_view_counter":"0","view_counter_number":"0","override_share_counter":"0","share_counter_number":"0","override_like_counter":"0","like_counter_number":"0","override_dislike_counter":"0","dislike_counter_number":"0"},"footnotes":""},"categories":[2],"tags":[78994,371,72160,12856,15406],"class_list":["post-322083","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-national","tag-chairman-of-tax-committee","tag-fg","tag-taiwo-oyedele","tag-tax","tag-vat"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.8 (Yoast SEO v27.8) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ 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