The Federal Executive Council which President Buhari presided over on Wednesday September 11, approved the increment of value added tax (VAT) rate from 5 percent to 7.2% percent.
The Minister of finance, budget and national planning, Mrs Zainab Ahmed confirmed the increment at the end of the cabinet meeting. The new rate which will take effect from 2020 is however subject to an amendment of the VAT act of 1994 by the national assembly.
Nigerians took to twitter to react:
Federal Government increased minimum wage and reduced purchasing power by increasing VAT to 7.2%. I stan, economic Yahoo yahoo. pic.twitter.com/VQK9gk3yMl
— Baba Folarin (@That_IjebuBadoo) September 12, 2019