Lovers of staple foods like corn, bread, cereals, fish and other basic commodities have no cause to worry as the Governments VAT policy doesn’t affect them.
The Value Added Tax (VAT) Act in Nigeria also exempts pharmaceuticals, educational items.
President Muhammadu Buhari in his 2020 budget presentation said that VAT exemptions are expanding under the Finance Bill, 2019.
He referenced section 46 of the Finance Bill, 2019 which expands the exempt items to include some basic food items.
Below are some of the items that are exempted from the VAT act.
a. Brown and white bread;
b. Cereals including maize, rice, wheat, millet, barley and sorghum;
c. Fish of all kinds;
d. Flour and starch meals;
e. Fruits, nuts, pulses and vegetables of various kinds;
f. Roots such as yam, cocoyam, sweet and Irish potatoes;
g. Meat and poultry products including eggs;
h. Milk;
i. Salt and herbs of various kinds; and
j. Natural water and table water.
The President in his speech added that his proposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for Micro, Small and Medium-sized businesses.
According to President Buhari, it is absolutely essential to intensify the nation’s revenue generation efforts.
He notes that his administration remains committed to ensuring that the inconvenience associated with any fiscal policy adjustments, is moderated, such that the poor and the vulnerable, who are most at risk, do not bear the brunt of these reforms.
(C) Control TV 2019.
