VAT to 7.5%: How Nigerians dey react to new Value Added Tax
Some Nigerians dey react for social media afta goment increase Value Added Tax from five to seven point five per cent.
Wetin be VAT? Minister of Finance, Zainab Ahmed, announce di increment afta dem finish dia Federal Executive Council meeting on Wednesday 12th September for Abuja. Madam Ahmed say dem increase VAT from di current 5 per cent to 7.5 per cent. 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 "Goment need to improve di agricultural sector and introduce tins like ranching, wey go increase our milk production and reduce importation on di product like milk ". na wetin im add put. Dis new vat wey Nigeria goment approve go need National Assembly approval before e go take effect from January 2020. For Twitter, @maziobiehumadu say instead to increase VAT make goment cut down unnecessary expenditure. While odas use funny funny memes take tok about di increment. Nigeria Finance Minister say one of di reasons why dem dey increase VAT na say state goment revenue dem don increase. Value Added Tax na special levy wey goment dey collect from consumers wey dey buy goods and services. Wetin dis 7.5 % VAT increment mean sef? BBC Africa Business Reporter Kunle Falayi, break am down for us. First of all, make we remind ourselves say Nigeria get one of di lowest rates for VAT for di whole world. Kontries for Africa like Zambia dey collect 16 per cent, Kenya - 16 per cent, South Africa - 15 per cent, Ghana sef na 12.5 per cent. Oda kontries wey get lower VAT like Nigeria be Saudi Arabia - 5 per cent, Singapore 7 per cent, Thailand 7 per cent and United Arab Emirates - 5 per cent. Small as e small reach for Nigeria, dat one no mean say tins no go hard for everybody wen if goment increase VAT to 7.5 per cent. Make we check some indices like minimum wage and standard of living to explain. Make we even add dis oda kontries wey we don mention for up. Below na di way minimum wage be for di kontries: Nigeria - , $82 (N30,000/month) Kenya - $130.86 (Ksh. 13,572/month) South Africa - $240 (R 3,500/month) Ghana - $58.11 (GH¢10.65/day) Saudi Arabia - $607 (2,279 SAR /month) Singapore - $839 (1,153 SGD /month) United Arab Emirates - $562 (2,066 AED per month) Jankara market for Lagos, Nigeria on March 9, 2016 For poverty level, out of all dis kontries wey we don mention, na only Nigeria get poverty level (87 million people according to World Poverty Clock) wey almost reach half of di population. In fact, no be all di state goment dem wey employ plenty people for Nigeria don gree to dey pay di N30,000 wey goment pass few months ago. E no get doubt say dis increment for VAT go lead to increase in di price of commodities. Make we also no forget say multiple taxes dey for oda goods and services for Nigeria wey dey different from VAT. hBut di qweshion be say, Nigerians dey okay enough to carry di wahala wey go follow dis increment?