Nigerians may have to brace for the tough times declared by President Muhammadu Buhari, following the Federal Government’s proposed increase of Value Added Tax (VAT) by between 35 and 50 per cent.
The chairman of Federal Inland Revenue Service (FIRS), Babatunde Fowler, dropped the hint when he appeared alongside other top officials in the Federal Ministry of Finance before the Senate Committee on Finance in Abuja, to give details of the 2019-2021 Medium Term Expenditure Framework and Fiscal Strategy Paper.
If the Senate approves the proposal, VAT will rise from the current five per cent to between 6.75 and 7.25 per cent, with implications for prices of goods and services, which are expected to rise, spiking inflation and depressing consumer spending.
Already, operators in the organised private sector are worried that the proposed increase, expected to come into effect before the end of the year, will further affect the economy that has been described as struggling, even as firms are exploring measures to transfer costs to consumers.
