Experts caution against VAT hike in Nigeria to avoid economic strain on businesses and consumers

• Experts warn against increasing VAT in Nigeria to generate more revenue
• Proposal to increase VAT to 15% from current 7.5% to fund fiscal deficit and debt service obligations
• Concerns raised about impact on investors, businesses, profit margins, investment growth, consumer purchasing power, and competitiveness
• Suggestions to improve VAT collection efficiency and expand range of goods and services subject to VAT
• Resistance to VAT increase due to economic instability, exchange rate volatility, and removal of fuel subsidy
• Need for government to implement fiscal policy interventions to cushion the effect of VAT increase on cost of consumption and doing business in Nigeria

Source: guardian.ng

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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