Federal Government to increase VAT in 2019 – Finance minister reveals

The federal government on Wednesday, introduced the Strategic Revenue Growth Initiative to generate more revenues to finance national development.

The minister of finance, Mrs Zainab Ahmed at the official inauguration of the initiative in Abuja said that the aim was to harmonise efforts of all the revenue generating agencies in increasing government’s coffers, NAN reports.

The major revenue generating agencies made presentations on the initiatives they would introduce in their respective agencies to increase revenue.

According to the finance minister, as a way of increasing non-oil revenue, the government was looking at the possibility of increasing Value Added Tax.

“We are studying a possibility of a VAT increase but you also know that the increase of VAT requires an amendment of a law. It is most likely the VAT increase will be selective. It will be on special items so it won’t be across the board.

“I am sure you are already aware that there are a number of items that are exempted from VAT such as food and drugs.

“There would be a VAT increase during the course of 2019, we will announce later the items and what the rate will be. We will have to take a request to the National Assembly for amendment of the VAT law before it takes effect,’’ she said.