The National assembly is considering a bill proposing an increase in the VAT from 7.5% to 10%
VAT refers to a consumption tax on goods & services levied at each stage of the supply chain where value is added.
In the executive bill seen by TheCable on Sunday, the national assembly is seeking to raise the tax rate to 10% by 2025.
The legislature also intends to increase the VAT to 12.5 percent by 2026 through 2029, according to the document.
VAT shall be charged on the value of all taxable supplies at the following rates (a) 2025 year of assessment 10%; (b) 2026, 2027 2028 and 2029 years of assessment 12.5% (c) 2030 year of assessment and thereafter 15%,” the document reads.
On May 8, Taiwo Oyedele, chairman of the presidential committee on fiscal policy and tax reforms, had said the VAT rate needs to be increased.
Reacting to the recommendation on September 8, Atiku Abubakar, former vice-president criticised the proposed VAT hike, describing it as a “regressive & punitive policy”.
