In a bid to shore up its revenue base to finance the 2020 budget, the executive arm of the Federal Government of Nigeria has expressed its intention to increase the chargeable rate of value added tax from 5 per cent to 7.5 per cent. The government’s intention was unveiled on 11 September 2019, when after its Federal Executive Council meeting, it disclosed that the chargeable rate of Value Added Tax (“VAT”) shall be increased by 50 per cent, effective 2020. In this article Senior Associate, Ibifubara Berenibara, highlights the legislative history of the VAT and the authority to amend the chargeable rate.
