Proposal to Increase VAT Rate and Adjust Revenue Sharing Formula for Economic Growth

• Presidential committee on fiscal policy and tax reforms suggests increasing Nigeria’s VAT rate
• VAT rate currently at 7.5%, needs to be adjusted upward
• VAT revenue-sharing formula to be reviewed
• Economy is over 50% in services, prompting VAT increase
• Food, education, medical services, and accommodation to have zero VAT
• Proposed to adjust state and local government’s share of VAT revenue to 90%
• Federal government’s share of VAT revenue may be reduced from 15% to 10%
• VAT should be burdened on the ultimate consumer
• Committee aims to make VAT reform transparent and neutral

Source: businessday.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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