Against the backdrop of the economic
crisis plaguing Nigeria amid falling global oil prices, the Federal
Government is considering changes to the nation’s tax regime in a bid to
shore up dwindling revenue.
There are indications that the
government will increase Value Added Tax, as recently suggested by the
International Monetary Fund, whose Managing Director, Ms. Christine
Lagarde, visited the country early this month.
Economic and financial experts have,
however, said the move to increase VAT would put further pressure on
Nigerians, as it would cause increase in the prices of goods and
services, among other implications.
VAT is a consumption tax payable on the
goods and service consumed by any person, whether government agencies,
business organisations or individuals. It is currently levied at the
rate of five per cent in the country.
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