Browsing: Nigerian Finance Bill

The Finance Bill, among other things, proposed an increase in the Value Added Tax (VAT) rate from 5 per cent to 7.5 per cent. The additional revenue from the increase in VAT rate would be used to fund healthcare, education and infrastructure. The Government intends to mitigate the impact of the VAT rate increase by introducing a VAT exemption threshold for businesses with a turnover of less than N25 million per annum, and expanding the list of VAT-exempt items to include the following:

1. Brown and white bread;
2. cereals including maize, rice, wheat, millet, barley and sorghum;
3. fish of all kinds;
4. flour and starch meals;
5. fruits, nuts, pulses and vegetables of various kinds;
6. roots such as yam, cocoyam, sweet and Irish potatoes;
7. meat and poultry products including eggs;
8. milk;
9. salt and herbs of various kinds; and
10. natural water and table water.

The Bill was signed into law by the President, Muhammadu…