The President Muhammadu Buhari regime says it will start having
consultations at various levels on the review of Nigeria's value-added
tax (VAT) from five percent to 7.2 percent.
The federal government pointed out that it was ready to begin
deductions to recover bailouts given to the state governments.
Zainab Ahmed, the Minister of Finance, stated this on Wednesday while
speaking with journalists after the maiden Federal Executive Council
meeting presided over by President Muhammadu Buhari.
“We will begin consultations and consultations will be at various
levels in the country. So it includes consultations with the states,
with the local governments, with the parliament as well as with the
Nigerian public. For the VAT increase to take effect, there has to be
an amendment to the VAT Act,” she said.
“It was not a grant to states by the federal government. The central
bank has a responsibility to ensure that loans given act are paid."