- Commercial banks, malls, telcos, and government agencies have notified their customers over the implementation of 7.5% VAT rate.
- The Nigerian government has raised VAT from 5% to 7.5% following the passage of a finance bill.
- Analysts describe the 7.5% new VAT rate as an additional burden on Nigerian citizens as well as investors.
Nigerian businesses have kicked off the implementation of the 7.5% Value Added Tax (VAT) rate, following the introduction of the Finance Bill.
Last month, Nigerian President Muhammadu Buhari signed the country’s finance bill into law, with a sweeping effect on Nigeria’s fiscal laws.
The government had said the new tax regime will not adversely affect Nigerians.
For instance, commercial banks, malls, telecommunication companies, and government agencies have notified their customers of the new policies and changes.
By this, the Association of Licensed Telecommunications Operators of Nigeria (ALTON) has notified Nigerians on the application of the new VAT rate on all purchased telecommunication products and services with effect from 1st of February 2020.
This means that the cost of phone calls, text messages, and data for the internet in Nigeria will reflect the new VAT increase.
In accordance with the Finance bill 2019 signed on 13th January 2020, the Value Added Tax (VAT) rate has been revised from 5% to 7.5% with effect from 00:00 Hrs 1st February 2020.
“As a result, the prices of our data plans, devices & accessories have been revised to reflect the revised 7.5% VAT rate from 00:00 Hrs 1st February 2020. Thanks for your usual co-operation”, a message from Spectranet, one of Nigeria’s internet provider, reads.
Analysts have, however, described the 7.5% new VAT rate as an additional burden on Nigerian citizens as well as investors.