Nigerian consumers will pay more on proposed 7.5% VAT increase

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The Chartered Institute of taxation of Nigeria, CITN, Ikeja and District Society has said that the proposed increase on Value Added Tax (VAT) rate from five to 7.5 percent by the federal government is on consumption especially from largest food retailers.

Barrister Sola Igbalajobi, Immediate Past Chairman, CITN, speaking at the association’s 2018 Annual General Meeting (AGM) in Lagos, said that VAT would not affect local goods but imported goods, adding that average life style may not be affected by VAT payment.

He stated: “Revenue generated by the state should be applied to ensure that all the facilities in the state are in place. Most of the roads are bad but I am sure the state governments are trying to ensure the roads are in order.

“The 7.5 percent VAT rate is on consumption. I believe a poor man would not go to Shoprite, but would rather use our local shops. When you go to Shoprite, then you have to pay VAT because the products are imported and when you pay VAT, the government would be able to generate more revenue. They can take care of our roads and health centres.

“The issue of payment of taxes as at when due is one of the conditions given to us by the President of the CITN as district that we need to go out and make sure we create awareness to artisans to encourage them to pay taxes.”

Igbalajobi who said his regime ensured it was building capacity, explained that it tried as much as possible to organize seminars and trainings to give support not only on taxation but on financial management and corporate governance.

He advised the newly elected excos, he urged them to persevere, work hard and be determined.

Meanwhile, the newly elected executive members for year 2020 includes: Chairman, Funsho Abidakun; Vice Chairman, Barr. Ngozika Austin Ilo; Deputy Vice Chairman, Mrs. Banke Akanni; General Secretary, Barr. Josephine Kadozie; among others.

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