Nigeria: Government mulls VAT increase

Nigerians were yesterday told to brace for a possible increase in the Value Added Tax (VAT).

VAT, now five per cent, is undergoing review, after which it may attract between 35 and 50 per cent increase, it was learnt.

The Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, broke the news yesterday.

He told the Senate Committee on Finance on the Medium Term Expenditure and Fiscal Strategy Framework (MTEF) that the need to increase VAT was informed by the necessity to raise more revenue for the government to meet its obligations.