FG commences implementation of 7.5% VAT

Accountant-General of the Federation, Mr. Ahmed Idris

Ahmed Idris, the accountant-general of the federation, says the implementation of the finance bill has begun.

One of the provisions included in the finance bill is the increment of the rate of value-added tax from 5% to 7.5%.

This is a contrary stance to that of Zainab Ahmed, the minister of finance, budget and national planning, who said the implementation date would be announced in due course.

Addressing journalists in Abuja on Wednesday, Ahmed said he stopped the payment for a transaction that occurred in 2019 because the VAT was processed at 5%.

When asked if it was right to use 7.5% VAT on a transaction that was carried out before the finance bill was signed, Ahmed responded that VAT is deducted at the point of payment and not at the point of purchase.

“You cannot implement a budget unless the national assembly passes it and Mr President signs it. So, the decision to increase VAT was debated and members of the public were sensitised and nobody can start deducting that VAT unless the bill is signed,” PUNCH quoted him to have said.

“Just yesterday (Tuesday), I saw a payment which was done last year in December and when I checked the payment, the VAT on it was 5% and I said no it must be 7.5% because the 5% VAT has been overtaken by events because that is the law as at today.

“So I stopped it and asked them to go and recharge at 7.5%. You cannot implement something unless you have the instrument whether administrative or legal for it to be implemented.”

In a statement released on Tuesday, Zainab Ahmed said the implementation would be announced later.


Be the first to comment

Leave a Reply

Your email address will not be published.