Increase In VAT: Senate Finance Committee To Invite Minister, FIRS Chairman

Following the proposed plan of the Federal Government to increase Value Added Tax, VAT, from current 5% to 7.2%, the Senate Committee on Finance has indicated that it will invite the Minister of Finance and the Chairman of the Federal Inland Revenue Service, FIRS, to throw more light on the reasons for the proposed increase.

Reacting to the increase as announced by the Minister of Finance Hajia Zainab Ahmed after a Federal Executive Council Meeting yesterday, Senator Solomon Adeola, (APC, Lagos West), the Chairman of the Senate Committee on Finance, said that the proposed increase in VAT has generated mixed reactions among the general populace on its possible effects on the living standard and the economy.

“We are glad that the Minister of Finance indicated that the VAT Act will have to be amended for the increase to take effect. But we are concerned about the current economic situation of the country as it affects the generality of the people” Senator Adeola stated.

The Chairman of the Senate Committee on Finance stated that the interaction with the two key officials of the Federal Government will form part of the basis for possible amendments of the VAT Act and to assuage any sentiments against the proposed VAT increase if eventually the Act is amended.