Economy
VAT: Senate Expresses Concerns, Summons Finance Minister, FIRS Boss
The Senate Committee on Finance has summoned the Minister of Finance, Budget and National Planning, Mrs. Zainab Shamsuna Ahmed to appear before it to explain the rationale for the proposed hike in the Value Added Tax, VAT by the Federal Government from the present 5% to 7.2%.
Also summoned is the Executive Chairman of Federal Inland Revenue Service, FIRS, Babatunde Fowler. In a statement issued on Thursday by the office of the Chairman of the Senate Committee on Finance, Solomon Adeola, said the invitation was necessary in the light of the mixed reactions the proposed increase has generated among the general populace and on its possible effects on living standard and the economy.
“We are glad that the Minister of Finance indicated that the VAT Act will have to be amended for the increase to take effect. But we are concerned about the current economic situation of the country as it affects the generality of the people” Adeola said.
The federal government had on Wednesday announced that it has approved an increase of 7.2% to commence next year.