7.5% VAT: Nigerians React Angrily

2 Min Read

As the reality of the Value Added Tax (VAT) increment that commenced on February 1 struck home, some Nigerians took to social media to lament an immediate increase in prices of goods and services across the country.

The VAT increment occurred following President Muhammadu Buhari’s assent to the 2020 Finance Bill passed by the National Assembly.

With the presidential assent, VAT rose from 5 percent to 7.5 percent, an 85 percent increase.

The Federal Government explained that revenue generated from the increase in Value Added Tax would help develop infrastructure.

But members of the organised private sector (OPS) in the country warned that the increment would push up the operating cost of businesses.

Market analysts also said that the policy would reduce the disposable income of Nigerians, thereby, limiting the ability of people to pay for certain services

Many Nigerians who took to social media on Wednesday lamented the increase in call tariff rates by major telecom operators as a result of the new 7.5% VAT.

A commenter, Agunego Kosisochukwu lamented that the poor masses could eventually not reap any democracy dividends for the hardship they are being subjected to due to the increment.

He wrote: “If only this 7.5% VAT will be used to develop the Country, But all this Revenue generated from the Poor Masses will still be Looted by our Corrupt Officials and also for rehabilitating Fake repetent Boko Haram Members.”

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