How new VAT 7.5% tax go affect your pocket
Nigeria Senate don pass Finance bill wey go see value-added tax increase from 5 percent to 7.5 percent.
Dis bill wey di senate don agree to, go also change di wey sectors dey pay tax as e go also amend Acts like Petroleum Profit Tax Act (PPT), Company Income Tax Act, Custom and Excise Tax Act, Stamp duties Tax Act, capital Gains Act and Personal Income Tax Act. Sabi pesin ontop money mata Funsho Ola-Oju of Andersen Tax tell BBC Pidgin say dis new VAT go affect Nigerians pocket well-well. "Price of goods and service go increase, transport too go dey expensive". Na wetin im tok But how di new Finance Bill go affect you as common man? Value Added Tax Act Wetin dey inside dis Act na tins wey di goment define as "goods" and "services" wey you dey pay for. Dis new increase for VAT from 5% to 7% go see you pay extra for dat tin wey you dey buy for shop. For example if you dey buy shawarma for 1000 Naira before your VAT na 50 Naira, but wit dis new increament your VAT go be 75 Naira. Dem go also introduce 25 million Naira revenue threshold for taxable pesins wey need to file returns. And if you dey late to make di returns, di penalty go be 1000% for if you fail di first time and 500% increase if you delay again. Wetin be VAT? Personal Income Tax Under dis new tax law, Banks go begin ask corporate customers to produce dia tax identification number as pre-condition to open or maintain bank accounts. Stamp Duties Tax Act Dis new amendment for di Finance Bill wey president Muhammadu Buhari go need sign before e become law go see di price wey pesin need pay for stamp duty increase from 4 Naira to 10,000 Naira. Di oda news under dis act be di stamp duty receippt go also cover pipo wey use electronic transaction take pay. Nigeria Finance Minister say one of di reasons why dem dey increase VAT na say state goment revenue dem don increase.