The Federal Inland Revenue Service (FIRS) on Wednesday refuted report
of planned increment of Value Added Tax (VAT) by 50 per cent to meet up
payment of the newly proposed minimum wage.
FIRS boss Babatunde Fowler |
Nigeria at present has a 5 percent VAT regime on goods and services.
The Head, Communication and Servicom Department, Mr Wahab Gbadamosi, made this known in a statement in Abuja.
The Minister of Budget and National Planning, Sen. Udo Udoma and Dr
Babatunde Fowler, FIRS Chairman, had appeared before Senate Committee on
Finance at the 2019-2021 Medium Term Expenditure Framework (MTEF) and
Fiscal Strategy Paper ((PSP) interactive meeting on Tuesday.
Gbadamosi explained that at the meeting, Fowler had called for an
increase in the number of Nigerians and companies paying VAT and not a
50 per cent increase in VAT rate as reported.
He said that contrary to reports in the media, the FIRS Chairman
called for a reduction in Companies Income Tax (CIT) rate for small
businesses so as to improve compliance.
“Though he indicated that there should be an increase in VAT rate by
the end of the year, he never for once suggested a 50 per cent hike of
any percentage increase at all.
“Rather, he promised improved collection in CIT, Petroleum Profits
Tax, PPT and VAT in 2019 relative to the collection performance of the
Service in 2018,” he said.
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