- The Minister of Finance, Budget and National Planning has asked the incoming government to raise the VAT to 10%.
- The minister said the increase, not the current 7.5%, would stimulate economic growth
- The minister also said President Buhari will end petrol subsidies by May 29, 2023.
Finance, Budget and National Planning Minister Zainab Ahmed has asked the incoming government to raise the value added tax from 7.5% to 10% to simulate economic growth in the country.
Ahmed made this clear during a visit to the Voice of Nigeria headquarters in Abuja.
Source: Getty Images
VAT to stimulate economic growth
she said:
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“VAT has been one of the ways to increase income, but it still needs to be raised because Nigeria’s VAT rate is 7.5%, the lowest in the world, not in Africa. In Africa, the African average is 18%.If you increase the VAT, you increase the Gross Domestic Product (GDP).”
The government had used the finance bill to close the leak and strengthen the Federal Internal Revenue Service (FIRS) and Nigerian Customs, the minister said. The federal government has automated two of her agencies through this process, she said.
Buhari to end petrol subsidies by May 29, 2023
She said the Nigerian government will remove the controversial petrol subsidies before Buhari resigns on May 29, 2023.
daily trust She reported that she attributed the delay in eliminating gasoline subsidies in the 2021 Petroleum Industry Act (PIA) to the 2023 general election and population and housing census.
Ahmed attributes the delay in removing subsidies, as mandated by the 2021 Petroleum Industry Act (PIA), to the 2023 general election and upcoming census.
Ahmed said the cost of subsidies per liter of gasoline is between N350 and N400 and that Nigeria spends about N250 billion on gasoline subsidies each month.
According to the minister, abolishing the subsidy was a challenging political and economic decision for the Buhari government.
She said that removing subsidies was a near-consensus decision in Nigeria.People now believe that subsidies are not serving the people for which they were intended, and their high costs cost the government excessive deficits. I believe that
Ghana removes fuel subsidies as Nigeria sets June date to end subsidies
Legit.ng The Ghana Petroleum Authority (NPA) has announced that it has ended support for gasoline in the country.
Elimination of subsidies is part of regulatory measures taken by Ghana to ensure stability across the downstream sector.
Abdul Hamid, Chief Executive Officer of the NPA of Ghana, made a disclosure in South Africa during the ongoing African Refiners and Distributors Week 2023.
Source: Legit.ng
