Your bank savings at risk as FG increases VAT by 50 %

As the federal government go aggressive in revenue generation, the consequence will most significantly bear down on Nigerians’ savings because the value added tax on good and services is now up by 50 percent.

Finnce Minister Zainab Ahmed said this Wednesday while briefing State House correspondents after the Federal Executive Council, FEC, meeting presided over by President Muhammadu Buhari.

According to her, the VAT will be moved from 5 percent to 7.2 percent.

Ahmed, however, said that the increase will take effect after the VAT Act is amended by the National Assembly and after consultation with stakeholders such as states, local councils, the private sector among others.

“Our projection is to finish consultations early enough so that it takes effect in 2020.”

The NASS will soon debate the proposal.

VATs are usually taken to reduce consumer savings and force them to spend as goods and services producers jack up their prices, and pass the increase to buyers.