Value-Added Tax (VAT) formerly known as sales tax in Nigeria.
VAT is a tax levied on goods and services consumed, it is shared among the three tiers of government,with the Federal Government taking 15 per cent, while the state and local governments share 50 per cent and 35 per cent respectively.
This tax is administered by the Federal Inland Revenue Service (FIRS).
VAT is currently charge @ 5% on all vatable goods and services.
So,any increment on Value Added Tax will increase the prices of all vatable goods and services,thereby reduced the purchasing power of millions of Nigerians as well as impoverished the already poor masses further.
So,my candid advice to the Federal government is that VAT should not be increase as means of generating additional revenue for the government rather the government should reduce financial wastages at all levels of government.
By Adams Abimbola Yusuf,Public Affairs Analyst.