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FG Approves VAT Increase From 5 to 7.2 Percent.

Valentine Chinyem

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The prices of goods in Nigeria is expected to shoot up as the Federal Executive Council (FEC) has approved a 2.2 per cent increase in Value Added Tax (VAT) from five to 7.2 percent.

The Minister of Finance, Budget and National Planning, Zainab Ahmed, made this known while briefing State House correspondents after the meeting which was presided by President Muhammadu Buhari.

According to her, the new VAT would not be implemented until it has been approved by the National Assembly, which is after the VAT Act is amended.

However, the council has directed relevant persons or agencies to consult with states, local governments and other stakeholders before the new regime would take effect in 2020.