While reacting to this, Young Otutu sampled other African countries and their plans on reduction noting that “world economies are cutting down VAT to stimulate economic growth but the Nigerian government is doing the opposite because it has no ideas.”
He summarised that:
“Nigeria 2019: Vat to 7.2%
Tunisia 2018: from 20% to 7%
Ghana in 2017: from 17.5% to 3%
Egypt 2019: Proposed reduction to 5%”
Moris Monye on his part wondered that while the noose is tightening and the border being closed which has already made food prices gone up, the Nigerian politicians are wicked to react.
Nigerian politicians are really the wickedest people on earth…
If you know about commodities, you can feel the noose tightening around the neck of the common man.
Increasing VAT to 7.2% while Senators are getting billions monthly and refusing to increase minimum wage is wow!
— the Morris Monye factor (@Morris_Monye) September 12, 2019
Other reactions are noted here:
FG still battling to implement minimum wage of 30,000
But a proposal to increase VAT to 7.2% has already been approved by FEC.
Nigerians, here comes your President.
Here comes the man some of you senseless humans voted for .
— Gentle_Ezenwanyi (@Queen_Minic) September 12, 2019
Buhari ‘s plan to increase VAT to 7.2% without increasing economic productivity is a sign that your country is led by mad men
Nigeria is currently achieving less than 10% of it’s VAT potential, we are not increasing our bracket, we are making life harder for businesses
— William Ukpe (@William_Ukpe) September 12, 2019
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed who disclosed this however said the increase may take effect in 2020 and not immediately as there will still be some negotiations.