Increase in the Rate of Value Added Tax Payable in Nigeria
The Federal Executive Council (FEC) recently approved an increase in the rate of Value Added Tax (VAT) payable in Nigeria to 7.5 percent, effective 2020. This proposed increase, represents an additional 2.5 percent on the 5 percent currently payable, as contained in Nigeria’s extant VAT legislation.
The action of the FEC is the latest attempt to increase the current rate payable in the country, which sees Nigeria currently being ranked among countries with the lowest VAT rate. While the proposed increase is by no means final, it would undoubtedly involve consultations with the National Assembly and relevant stakeholders and could possibly amount to an amendment of the VAT Act.
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