Tag
VAT RATE
The Federal government plans to steadily raise the rate for Value Added Tax (VAT) to 15% from the current 7.5%.
Although we expect the recent increment in the VAT rate to support growth in VAT on locally produced goods, in the short term, we expect the momentum as aggregate demand weakens due to a reduction in income levels and job losses brought about by the global pandemic.
FEC has approved an increase in VAT rate from 5% to 7.2%. The Minister of Finance, Zainab Ahmed made this disclosure.