The Federal Government has shared that an increase in Value Added Tax (VAT) on specific items is being considered.
The Minister of Finance Zainab Ahmed said this on Wednesday at the inauguration of the Strategic Revenue Growth Initiative.
The Cable reports that she said the Federal Executive Council will take a request to the National Assembly to amend the VAT law. She said:
We are studying a possibility of a VAT increase but you also know that the increase of VAT requires an amendment of the law.
It is most likely the VAT increase will be selective. It will be on special items so it won’t be across the board. I am sure you are already aware that there are a number of items that are exempted from VAT such as food and drugs.
There would be a VAT increase during the course of 2019, we will announce later the items and what the rate will be. We will have to take a request to the National Assembly for amendment of the VAT law before it takes effect.