The Minister of Finance, Budget and National Planning Mrs Zainab Ahmed, says the implementation of Value Added Tax (VAT) increase from five per cent to 7.5 per cent will take effect from next month,February 1.
Ahmed said this during the inauguration of the Chairman and Board members of the Federal Inland Revenue Service (FIRS) in Abuja on Thursday.
“We planned that going forward, the annual budget will always be accompanied by Finance Bills to enable the realisation of revenue projections.
“Future Finance Bills will therefore, provide us with additional opportunities to incrementally improve the fiscal policy and regulatory and legal environment.
“This is in order to further strengthen our domestic capital market, and ultimately ensure sustained and inclusive growth and development,” she said.
Ahmed also recalled that the Finance Act had also taken care of essential palliatives to support Micro, Small and Medium Enterprises (MSMEs) and mitigate the impact of VAT rate increase on the most vulnerable businesses, communities and citizens in the country
While inaugurating the board, the minister urged the new board to ensure steadfastness of the service in meeting non-oil revenue targets to accelerate the nation’s development.She said the board was saddled with various responsibilities, including the supervision of the FIRS.