FIRS Refutes 50% Tax Increase

FIRS
  • FIRS Refutes 50% Tax Increase

The Federal Inland Revenue Service (FIRS) has refuted the widely published report that the agency is planning to increase Value Added Tax (VAT) by 50 per cent to meet up with the newly proposed minimum wage of N30,000.

Mr Wahab Gbadamosi, the Head, Communication and Servicom Department, disclosed this in a statement in Abuja on Wednesday.

Gbadamosi explained that the Chairman of FIRS Dr Babatunde Fowler called for an increase in the number of Nigerians and businesses paying VAT and not a 50 per cent rise in VAT rate as widely reported.

He also noted that the FIRS Chairman called for a reduction in Companies Income Tax (CIT) to boost business activities and aid growth.

While, he agreed that the Chairman at some point suggested that the VAT rate should be increased by the end of the year, he never stipulated a 50 per cent increase.

“Though he indicated that there should be an increase in VAT rate by the end of the year, he never for once suggested a 50 per cent hike of any percentage increase at all.

“Rather, he promised improved collection in CIT, Petroleum Profits Tax, PPT and VAT in 2019 relative to the collection performance of the Service in 2018,” he said.

Federal Government currently charges 5 per cent VAT on goods and services.

About the Author

Samed Olukoya
CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and Investing.com, with over a decade long experience in the global financial market. Contact Samed on Twitter: @sameolukoya

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