How Nigerian taxpayers react to 7.5% VAT rise

Isola Moses

Consequent upon the recent increase President Muhammadu Buhari-led Administration effected in the Value-Added Tax (VAT) rate, Nigerians have expressed mixed reactions to the development, especially on major Social Media platforms.

ConsumerConnect recalls President Buhari formally announced the new development on his Twitter handle on Monday, January 13, after signing the 2020 Finance Bill into law.

The Value Added Tax in the country had been 5%, but once the new law becomes effective, VAT in becomes 7.5% in the Nigerian economy.

On the rationale behind the latest increase, Nigerian Tribune reports that Mrs. Zainab Ahmed, Honourable Minister for Finance, Budget and National Planning, stated that the move is necessary “to make more money available for the government.”

This measure is most especially for the state government to enable them to pay workers the newly approved minimum wage of N30,000.

Nigerians, however, took to Twitter to express their views on the new increase, see the reactions below:

Dr. Dípò Awójídé @OgbeniDipo said the “Average VAT rate in most European counties is around 20-25%. You might argue that Nigeria is different.

“But 7.5% VAT in Nigeria is great. It helps government raise revenue needed for infrastructure. Accountability and judicious use of raised VAT is another issue entirely.

Certain Ajidara Romeo @Rromeod1 also stated that “7.5% VAT is just another method of extortion; we are tired of all this stomach infrastructure bullshit.”

Masky2.0 @officialmasky90 declares “so Baba can implement 7.5% VAT, but cannot implement minimum wage.”

Michael Effiong @Iam_MikeMike equally said I’ve heard a lot that this 7.5% VAT isn’t going to affect the poor. Who told you? An economist?

“Many a time, goods and services provided by large companies end up with the average citizens as the final consumers….”

According to Umaru Suleiman a.k.a. (GMB) @tenimu2013, he stated that “7.5% VAT is not on food, medicines (drug) and education items, etc.

“The 7.5% VAT is not for the poor or vulnerable but the middle class and the rich. They should pay more and we pay less.”

Still, YourFavoriteNurse @louis_endr said “don’t over-rejoice because you think only big companies will pay the 7.5 % VAT signed into law.

“Lol, you as a consumer will have to pay more to get their products and services. This will end up closing some companies and creating more unemployment.

“Buhari has failed us all,” he added.

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