FG Confirms Plan to Raise VAT on Luxury Goods by 2.5% to Boost Revenue

• Federal Government confirms plan to raise VAT rate by 2.5%
• Minister of Finance Wale Edun disclosed the plan at an investor meeting in Washington DC
• The hike will target luxury goods and will be applied gradually
• Essential items consumed by poorer Nigerians will remain exempt from VAT
• List of essential goods exempted from VAT will be made available to the public
• Proposed law to increase VAT from 7.5% to 10% is under consideration by the National Assembly
• Subsequent increases in VAT rate are also indicated in the proposed law

Source: economicconfidential.com

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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