President Buhari had formally announced the new development on his Twitter handle on Monday, after signing the 2020 Finance Bill into law.
The Value Added Tax in the country had been 5% but once the new law becomes effective, VAT in Nigeria will become 7.5%.
Nigeria’s Minister of Finance, Zainab Ahmed while explaining the new VAT stated that the move is necessary to make more money available for the government, most especially the state government to enable them to pay workers the newly approved minimum wage of #30,000.
Nigerians, however, took to Twitter to express their views on the new increase, see the reactions below:
Average VAT rate in most European counties is around 20-25%. You might argue that Nigeria is different. But 7.5% VAT in Nigeria is great. It helps government raise revenue needed for infrastructure. Accountability and judicious use of raised VAT is another issue entirely.
— Dr. Dípò Awójídé (@OgbeniDipo) January 14, 2020
Here is everything you need to know about the 7.5% VAT that will affect Nigerian business owners. This should be easy to understand I guess and when you read through what’s your say about it.
Wise move or not ? pic.twitter.com/nhTvMLpljj
— ADEBUKOLA (@SurtanLeee) January 14, 2020
7.5% VAT is just another methods of extortion, we are tired of all this stomach infrastructure bullshit. Imagine Vision 2020 is here with #7.5%VAT
— Ajidara Romeo (@Rromeod1) January 14, 2020
So Bubu can implement 7.5%VAT but cannot implement minimum wage pic.twitter.com/lPqTdnprxE
— masky².0 (@officialmasky90) January 14, 2020
I've heard a lot that this 7.5% VAT isn't going to affect the poor. Who told you? An economist? Many a time, goods and services provided by large companies end up with the average citizens as the final consumers.
If the VAT is targeted on companies with turn over of over N25m
— MikeMike Michael Effiong. (@Iam_MikeMike) January 14, 2020
BRIEF BREAKDOWN ON THE TAX REFORM know as FINANCE BILL 2019:-
7.5% VAT is not on food, medicines (drug) and education items, etc.
The 7.5% VAT is not for the poor or vulnerable but the middle class and the rich. They should pay more and we pay less.
— Umaru Suleiman aka (GMB) (@tenimu2013) January 14, 2020
Don’t over rejoice because you think only big companies will pay the 7.5 % VAT signed into law.
Lol, you as a consumer will have to pay more to get their products and services. This will end up closing some companies and creating more unemployment.
Buhari has failed us all https://t.co/2vF9Qhnfdw
— YourFavoriteNurse (@louis_endr) January 14, 2020
7.5% VAT is not the problem sir.
The government is not providing value for the 5% VAT and they want the citizens to sit and watch them raise the %.
The govt is currently struggling to meet up with its recurrent expenditures. so why will I pay more VAT to help govt pay salaries? https://t.co/UzK0xaVz3K
— KING LA'BODE (@ItzLabode) January 14, 2020
7.5% VAT increment is really not a problem assuming the motive behind it is right.
What has become of all the 'revenues' raised by the government since inception?
Is there any evidence of a positive effect of the proceeds on the common man?
E go better is still our slogan.
— Wale Adetona (@iSlimfit) January 14, 2020
— Scent9jA (@Scent9jA) January 14, 2020
Nay sayers and the #GenerationsOfVipers who can't read and discern have jumped on the band wagon of "7.5% VAT is = to increased hardship" has failed to see the huge benefits and the wholesomeness of this reforms. Thank you Baba Buhari. https://t.co/41VRIn8F1u
— Major General Oma 'Loogun Liyetu (@korllyybobo) January 14, 2020
Sometimes I wonder if we actually still have the economic teams.
Watch this video till end. pic.twitter.com/YvSuIYE5G3
— Mazi Ejike Aloysius (@Ejiphills) January 14, 2020
Dear fellow Nigerians,
If you think life has been tough in the last 5 years or that your beloved Naira has become almost useless, please brace yourselves.
5 taxes are coming into effect as Papa Hanan (a.k.a Buhari) has signed a bill that will punish entrepreneurship
— The Revolutionary Seeker (WAEC) (@The_Seeker76) January 14, 2020
3 THINGS D@ MUST HAPPEN WITH D NEW 7.5 VAT.
1, Politicians will've more money to loot.
2, Companies will increase d prices of commodities & services 2 recoup d new VAT.
3,There'll be more suffering 4 d governed.
FACT: Taxes are meant 4 d rich but it's d poor, who pay it.
— chinanu Ndumele CN (@CN4real) January 14, 2020
How can the leadership of Nigeria be this brutal. Not considering the economy of the country but raising the tax rate to 7.5% VAT.
Please watch and share so people can understand the injury they're causing pic.twitter.com/b3WkGgw59g
— jinadu precious (@precido100) January 14, 2020