Nigeria’s VAT Rate Lowest in Africa – Osinbajo

Vice President Yemi Osinbajo yesterday said that Nigeria’s Value Added Tax (VAT) is the lowest in the whole of Africa.

The vice president stated this in Lafia, the Nasarawa State capital, at the National Micro, Small and Medium Enterprises Clinics for Viable Enterprises.

According to Osinbajo, “many people have said this is a higher tax rate for consumers and has complications on those who are trading as well. You must remember that this is the lowest VAT rate in the whole of Africa.”

“While it is true that Ghana has reduced its VAT rate from 15 to 12.5 per cent, ours is 7.5 per cent,” he added.

He noted that small and medium companies with a turnover of less than N25 million do not have to register for VAT.

“So, that way, the government is not creating any extra burden for the small and medium companies. In addition to reducing the impact of VAT on consumers, several basic items such as food, drugs and educational items are exempted. So, there is no payment of VAT on food, drugs and educational items,” Osinbajo said.

The vice president disclosed that the additional revenues from VAT would now go to the states for the payment of the new minimum wage.

– Thisdaylive