The federal government in line with its objective to rejuvenate the economy is planning to increase the Value Added Tax on Luxury goods to 15 percent. This was announced by the minister of Finance and coordinating minister of the Economy, Wale Edun in Washington DC at the IMF/World Bank annual meetings.
The minister said “In terms of VAT, the commitment of President Bola Tinubu is that while implementing difficult and wide-ranging but necessary reforms, the poorest and most vulnerable will be protected.
“And in the case of VAT, it is a very efficient tax for reasons well-known but it is also a tax that is targeted. So the bills going through the National Assembly in terms of VAT will raise VAT for the wealthy on luxury goods while at the same time seeking to exempt or seek a zero rate for the essentials and for what the poor and the average persons will purchase.”
Wale Edun also reiterated that the total removal of fuel subsidy has been effective from September 2024 and the proceedings will be a great tool for economic recovery and revitalization as the oil sector is expected to boom due to various measures that have been put in place and new investments that has been announced.
The economic reforms is a necessity at this downtime which Nigeria has been experiencing for years and administration after administration, however , Nigerians are hoping that the current administration will not only renew the hope of the common man but also reflect the achievements of the administration and it’s policies in their lives as a bonafide citizen of the state.
