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Nigerians Lament As Buhari Signs Finance Bill, Increases VAT From 5% To 7.5%

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Nigerians Lament As Buhari Signs Finance Bill, Increases VAT From 5% To 7.5%

President Buhari signing finance bill on January 2019
President Buhari signing finance bill on January 2019

President Muhammed on Monday signed the finance bill that the National Assembly passed in November 2019 into law.

The law has however drawn a lot of mixed reactions from Nigerians, especially about the increment of  Value Added Tax (VAT) from 5% to 7.5%.

While explaining the reason for the increment, Nigeria’s Minister of Finance, Zainab Ahmed, had stated that the move is to make more money available to the government.

She added that the finance bill is particularly to help the state governments to enable them to pay workers the newly approved N30,000 minimum wage.

The bill was submitted to the national assembly alongside the budget but the bill signing is coming 27 days after the 2020 budget was signed into law on December 17.

Buhari’s signing of the Act at the State House, Abuja, empowers the federal government to collect the sales tax, which proceeds will be shared by the three tiers of government.

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