We Would Soon Increase VAT On Carbonated Drinks, Others – Finance Minister, Zainab Ahmed Says

We Would Soon Increase VAT On Carbonated Drinks, Others – Finance Minister, Zainab Ahmed Says

Two days after an increase in Minimum wage was announced, the Federal
government has announced plans to also increase Value Added Tax.

Minister of Finance, Zainab Ahmed, announced this at the launch of
the Strategic Revenue Growth Initiative in Abuja. According to the
Minister, some of the items that will be having an increase in VAT
include carbonated drinks as well as some luxury items.

“There will be a VAT increase. During the course of 2019, we will
have clarity as to which items and what the rate will be and we will
have to take a request to the National Assembly for amendment before it
takes effect. There is also going to be luxury tax. Already, there is
luxury tax imposed on things like jets, yachts and few exceptional items
that are classified as luxury and the Chairman FIRS will speak to that
but we are contemplating increasing excise duties on carbonated drinks
just like we have excise duties now on Tobacco and alcohol.

“But this is going to be a subject of study because we have to
identify which ones will be affected and the best way in which to apply
the taxes” she said