Some items are exempted from the new 7.5 per cent Valued Added Tax (VAT) expected to take effect from February 1, 2019.
President Muhammadu Buhari had January 13, 2019 signed the Finance Act 2019 to improve the revenue base of the country. The new law effected some changes to the country’s tax system and raised VAT from 5 per cent to 7.5 per cent.
But a statement from the office of the Vice President said: “In a bid to ensure that the cost of living does not rise for Nigerians because of the changes in the Value-Added Tax, several basic food items, locally manufactured sanitary towels, pads and tuition relating to nursery, primary, secondary and tertiary education have been added to the exemption list of goods and services on the VAT under the Finance Bill 2019, signed by President Muhammadu Buhari last week, on the 13th January 2020.”
The items exempted, according to the presidency, include “Basic food items – Additives (honey), bread, cereals, cooking oils, culinary herbs, fish, flour and starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt, vegetables, water (natural water and table water)
” Locally manufactured sanitary towels, pads or tampons. Services rendered by microfinance banks Tuition relating to the nursery, primary, secondary and tertiary education.”