What is your take on FG plans to increase VAT to 7.5% (1)

Any increase in Value Added Tax, VAT, can only be productive if it is part of a broad fiscal strategy of rebalancing the tax mix in favour of consumption, and it will entail lowering the company income tax. Doing otherwise  in an economy that is grappling with double-digit inflation, weak growth and high rate of unemployment, will jeopardise government’s efforts at revamping the economy.Miss Muhammad Amina,


Fashion designer
Yes, I see a crawling increment in the prices of goods and services because producers will want to make profit and they will take it out on their consumers. It would lead to shortage in demand. It would affect all parties.

Mr. Aturu Samuel Student
It would lead to an increase in the price of goods and services because an increase in VAT would in turn lead to an increase in the cost of production and when the cost of production is high, the prices of goods and services also go up. Price mechanism doesn’t work in this part of the world.

Miss Alabi Esther Student
Definitely, it should be expected and it’s inevitable, because everybody would want to have a fair share of what they thought would be an increase in every worker’s salary, which in my opinion would only bring about increase in prices of goods and services. The increment in VAT to me, would be a burden to a lot of people.

Mr. Agbabiaka Abiodun, Car dealer
A few weeks ago, the new minimum wage was approved, and this cut across all sectors, so there is no harm in the Federal Government increasing VAT. I don’t think there would be any increase whatsoever in the prices of goods and services.
Mr. Ojediran Paul Student

IMF ON TAX IN NIGERIA: Expand tax net rather than tax rate, MAN, LCCI, other stakeholders tell FG

Increase in VAT is not bad because government needs money. Where trust in government exists, there should be no fear, but the purchasing power of Nigerians is low so an increase in VAT would mean increase in prices of goods and services, thereby nullifying the gains of minimum wage. Government should increase VAT on non-essential goods and services like cigarette, wine, and luxury  cars among others.

Mrs Feyisike Adeoye  NGO boss

By Bose Adelaja, Ebun Sessou, Yinka Latona, Chiamaka Uba & Dickson Omobola

Source:https://samueljackson12.blogspot.com/2019/03/what-is-your-take-on-fg-plans-to.html

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