Nigeria Needs To Increase VAT Rate, Says Presidential Committee On Tax Reforms
The Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, says the committee has recommended an upward review of the value-added tax (VAT) rate.
Oyedele, while speaking at a policy exposure and impact assessment session organised by the committee, said that the VAT revenue-sharing formula would be reviewed.
Nigeria’s VAT rate is currently 7.5 percent.
He noted that according to Section 40 of the VAT Act, the federal government gets 15 percent of the tax revenue, states share 50 percent, and local governments share the balance of 35 percent.
He however noted that the committee is recommending reducing the federal government’s share from 15 percent to 10 percent.
“We are proposing that the federal government’s portion should be reduced from 15 percent to 10 percent. States’ portion will be increased but they would share 90 percent with local governments,” TheCable quoted Oyedele as saying.
