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Everything You Buy is About to Get More Expensive as Nigerian Government plans VAT Increase

BellaNaija.com

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Just when we were trying to get our heads around the newly introduced stamp duty, there are strong indications that VAT will increase.

CCTV Africa reports; Nigeria’s government is considering changes to the tax regime as part of efforts to overcome the crisis brought on by falling oil prices. Vice President Yemi Osinbajo said that the government is looking at increasing tax coverage.

The government plans to increase value-added tax from 5 percent, which is among the world’s lowest VAT rates, and broadening the tax base. Osinbajo said that at present they were only collecting just about 20 percent of the potential tax.

The sharp drop in crude revenues, which provide 95 percent of foreign earnings, has led to the Naira hitting record lows on the parallel market as foreign exchange reserves dwindle. Finance Minister Kemi Adeosun last week announced plans to borrow up to $5 billion from multiple sources, including the Eurobond market, to plug its budget deficit.

45 Comments

  1. Chinel

    January 27, 2016 at 9:23 am

    As always, the solution of the Nigerian government to the hardship the people are facing is more hardship….God go punish una

    • ak

      January 27, 2016 at 6:39 pm

      Didn’t Mama Lagarde (IMF) just come to Nigeria and Buhari said they will look internally to source the funds?

      I wonder if she’s the one who suggested these austerity measures….

      But also, i’m still wondering why we are going to borrow up to $5 billion when Dasuki and Diezani stole more than that…. but let me keep sipping my tea

  2. Tosin

    January 27, 2016 at 9:37 am

    What is the actual strategy, eyin people wonyii? Sure you don’t want to call the Emir of Kano to help out?

  3. Arogundade Adedolapo

    January 27, 2016 at 9:47 am

    I don’t think Our Government really know what they are doing; this people lack all it take to really run a community not to talk of running a whole country.

    They are killing the poor the more; cos whenever there is an increase in the VAT RATE, there is an increase in any goods and services in the country…. even the price of OMO, AGBALUMO, TOM TOM will forever increase.

    God Bless Nigeria!

  4. Ban

    January 27, 2016 at 9:53 am

    So, in their heads, that’s probable solution they can give.

  5. jack101

    January 27, 2016 at 10:03 am

    Enjoy the change my fellow Nigerians, una never see anything. Just episode 1 of season 1, episode 2 to 12 still loading…

  6. Me

    January 27, 2016 at 10:11 am

    Me in 2019 when I hear vote for change, ??????

  7. Tunde

    January 27, 2016 at 10:25 am

    Yet you wonder why no one wants to live in Nigeria.
    The problem is that the government underestimates the citizens in my opinion. They do whatever they like because they no we can’t do anything.
    Why don’t we all start a riot or a movement, let them know we are not stupid?

  8. PDP blind FOLLOWERS

    January 27, 2016 at 10:36 am

    PDP idiot followers are all over Bella naija. It behooves me to know that the people here are the so called educated elites of the country. If Y’all reason like this, what is the future of this country then. Any little policy, it becomes a party thing

    Can’t you just reason or comprehend the article?

    VP said 20% of tax for the whole nation is only being collected, which is true. Many people evade tax on so many things.Many collect their salaries without tax especially the private workers. Infact our tax system is zero except for LIRS and FIRS that deducts tax before paying federal workers via IPPIS. Other states and local government is nothing to write home about.

    The America you are crying about, do you know how it works and how it is being maintained?

    You buy water, you pay tax on it; buy ice cream, there is tax on it….But you spend hundreds of thousands in the club one night, spend on shawarma, pizza, coldstone, buy clothes like no tomorrow, order for shoes “upandan” and you dont pay a dime here. How will there be good roads and other social amenities if you don’t pay your tax? If not for Nigerian oil that is covering up for so many things, you for know say PDP don destroy you beyond repairs

    If we want to be a great country like other great countries, we must follow their foot path to arrive where they are at the moment.

    Poverty mentality oshi

    • Dami

      January 27, 2016 at 11:27 am

      ‘VP said 20% of tax is only being collected for the whole nation’
      There you go! Instead of increasing VAT why can’t they increase the tax efficiency. Why can’t they put policies in place to reduce tax evasion? Very lazy people, they’ll rather go the easy route. Rubbish!

    • TK

      January 27, 2016 at 12:36 pm

      Efficiency on how much collected tax? Is your suggestion that the tax collected from say 20% of the population be managed so efficiently that it caters (adequately?) for the needs of the remaining 80% of the population?

      Could it be because the 20% who are working all the hours owe you?

      We ALL need to be paying something even if is 1% or N100 a month for some form of basic social services . Whichever way you slice or dice it, you will pay proportional to your income (1% of 1000 and 1% of 5bn = win-win).

      You need people to have a stake in their communities and a stake is the pain of paying taxes so you feel you have a right to challenge the person disfiguring a public facility instead of shrugging shoulders like “no be my papa property”.

      @PDPblind followers, 100 gbosas for you!

    • sayit

      January 27, 2016 at 1:25 pm

      @TK this is what happens when you are so party affiliated and quick to reply. i believe dami was talking about building better institutions, policies, laws to hold down those who avoid paying tax to ensure they start paying.

      If you increase the VAT without proper systems in place what then is the use?

    • Lagos is my home

      January 27, 2016 at 11:46 am

      Forget what is done abroad …….. The reality is that this TAX will go into another Dasuki pocket . end of story ……. U think more roads and amenities will be built . Story story . if at all the government will go and borrow loan so that wont impact their stealing and shift the loan payment back to the common man .
      See how much revenue Lagos state gets get Fashola was borrowing up and down, Toll gate tax to pay for the borrowing and further enrich Tinubu Pocket . . Radio silence and what the revenue generated by the state is used for , ..Website ???

    • Okechukwu Ofili

      January 27, 2016 at 11:56 am

      Election is over o. When they are collecting extra VAT they will not stop and check whether you belong to PDP or APC or even KOWA.

    • Tee

      January 27, 2016 at 12:05 pm

      Technically there isn’t tax on food in the grocery stores. At the restaurants. , heck yes. You can make 2500 dollars in two weeks and after taxes you get down to about 1800 depending on the state. Taxes help the government provide for the country.
      That being said, Nigeria should learn something important, there’s nothing wrong in taxing people or creating new policies, but there should be something called votes. Obama just doesn’t wake up today and say, oh we are increasing taxes because the country is broke. Somebody brings up a policy or tries to amend a law, it’ll go through senate for approval and most importantly, if that bill passes it doesn’t start that day. It could be a year from now. People need time to process these things.
      If Nigeria is that broke, why are ministers earning so much? Why is their allowance ridiculous? Why not cut down on government allowances and stuff to better the economy ? Why does the poor have to suffer?
      So without oil, Nigeria as a whole is useless ?
      We don’t have agriculture Abi ? We can’t encourage more farming so we can export more?
      You won’t give loans to farmers ??
      Okay now
      But they’ll say it’s for the good of the country ?
      Prayers are not going to fix this country. I know many of us here( America ) talk about Nigerias problems and we want to make it better. But who are we? We are not government children, no connections, Will they even allow the young folks rule ?
      It is well with Nigeria.
      They may start charging y’all for just being Nigerians at this point

    • FIFIAMA

      January 27, 2016 at 12:10 pm

      Hmmm who is mentioning party here friend. We talking on how it will affect us . If the government is going to put taxes on us they must be accountable for it. This government is clueless what they said during campaigning is different from what they are doing now.
      Am not PDP member just a simple Nigeria airing my view. Change my foot

    • FasholasLover

      January 27, 2016 at 1:01 pm

      Your body just dey hot like engine wey wan knock. Do you go to a different market from the rest of us? I get it, you hv a tree growing money in ur back garden
      Hand on ur heart how has your life improved since bubu took over? Suffering and smilling. When your landlord comes knocking pls. give him/her this your long epistle.

      Insipid twat.

    • FasholasLover

      January 27, 2016 at 1:06 pm

      Comment is for @PDP

    • Ba

      January 27, 2016 at 1:20 pm

      A country with poor accountability, mismanagement of funds, and corruption on a rampant scale.
      Trust scale with the citizenry is zero.

      Nigeria is not ripe for VAT increment and other form of tax as a source of revenue.
      The foundation is weak and if they dare continue, they will face consequences.

    • Nuna

      January 27, 2016 at 2:18 pm

      I dont even know how to classify you. At least in those countries things work! The tax Thiefnubu and Fashola collected (and are still ‘collecting’ and still roads in Lagos are crap, slums abound, when the rains come everywhere gets flooded etc etc. I hope you have not been on the moon. Mtschew!

    • Grace

      January 27, 2016 at 3:25 pm

      you seem not to be in the know, or never read 48laws of power… one of the laws says…preach change, but do not try to reform alot at once.
      N.B everything is not about APC and PDP! blind you!

    • Ayoka

      January 27, 2016 at 4:58 pm

      how can it BEHOOVE you to know?

    • APC is PDP

      January 27, 2016 at 10:14 pm

      Please keep quiet with the PDP rant. As we all know APC is 50% PDP. Stop acting like there is a difference. The leaders are the problem just because they changed party doesn’t mean change will magically appear.

  9. jjjazz

    January 27, 2016 at 10:37 am

    IT IS SO UNFORTUNATE, CAN A NIGERIAN GO TO FRANCE TO TELL THEM HOW TO RUN THEIR GOVERNMENT?, CAN A CHINESE GO TO GHANA TO TELL GHANIANS HOW TO RUN THEIR GOVERNMENT,?WHAT HAPPEN TO THE LOOTED MONEY ALREADY GOT, IS THE MONEY MISSING AGAIN, I PITY NIGERIANS, INCREASE VAT WILL NEVER SOLVE NIGERIAN PROBLEM ,THE ONLY THING THAT WILL SOLVE NIGERIANS PROBLEM IS GREED. EVERYBODY IS AFTER HOW TO ACQUIRE WEALTH BOTH OLD AND YOUNG, JONATHAN GOVERNMENT MIGHT BE CORRUPT, BUT STILL EXCHANGE RATE IS NOT AS BAD AS IT IS DURING JONATHAN GOVERNMENT, OIL PRICE DROP, OIL PRICE DROPS WORLDWIDE,IT DOES NOT ONLY AFFECT NIGERIA, UNTIL WE ARE ABLE TO BE SINCERE TO OURSELVES,STEALING, EMBEZZLEMENT, LOOTING WILL NEVER STOP.

  10. Sonia Paloma

    January 27, 2016 at 10:56 am

    You all want to borrow $5 Billion?
    What do these uncivilised twats do with our country’s money?
    You want to increase VAT? do you know there is a large % of your population that survives on #10k in a month? do they know a lot of the population lives in abject poverty and they are the ones to get the brunt of any VAT increase?
    Thunder fire all these Government officials that only care about themselves
    Rubbish!
    Bella, post my comment ehnn .

  11. ATL's finest

    January 27, 2016 at 11:28 am

    Hmmmmmmmmm I don’t know if to cry, laugh, be depressed, upset etc. Same Ole BS mtchew.. God make a way when there’s no way AMEN.

  12. Brown

    January 27, 2016 at 11:40 am

    Hehehehe. They should kuku just collect everything we earn on top rebuilding reserves.

  13. Zee

    January 27, 2016 at 11:43 am

    It’s you who is ignorant. Did you read this part,”The government plans to increase value-added tax from 5 percent, which is among the world’s lowest VAT rates, AND broadening the tax base”.

  14. ifeanyi

    January 27, 2016 at 11:56 am

    Funny enough people see problems only in their own reality!!!

    The Country is Broke!!!! I repeat it…The Country Is Broke!!!! **Shouting**

    All these countries you people are shouting about, have a robust and broad tax system!!!

    They Tax your four times…Yes! Four times every time money comes or leaves your pocket…

    1. When you earn 1.e Income Tax
    2. When you Spend 1.e VAT…Mind you, Most countries in Europe have a VAT of 21%. Nigeria is 5%
    3. When you save…i.e common N50 and Nigerian are shouting…lol
    4. When you die i.e i an sure you know there is a Inheritance Tax within the Euro zone, When you transfer your house to your Children , The rate of Inheritance Tax is 40% on anything above the threshold. The rate may be reduced to 36% . Even when you receive Gift from someone, you need to file your Tax return!!! All these is if you have a Will. Without it and you die, the proceeds go to the Government!

    I understand Nigerians!!! Honestly…I do! But if we truly want a functioning nation, these things go hand-in-hand!

    First, we need to increase compliance in tax returns. Second, we increase the tax base to everyone providing a Value-added service….from the market woman to the danfo driver. ..Hey,.Hey..Before you crucify me…Prostitute pay Tax in Netherlands and if you deal on Growing and selling Marijuana, you have to file your Tax returns..It is a Value-Added Service…A lot of tax return in Nigeria is lost through the informal sector.. Lastly, we need to increase the 5% VAT to 10%-12%…

    Having said all, I trust Tunde Fowler…He as a proven record in Lagos!

    We have a Nation to build!!! Sai Buhari!

    • Nuna

      January 27, 2016 at 2:33 pm

      Have you considered that the taxes they pay in these countries are commensurate with the services they receive. Why are Scandinavians voted the happiest people in the world even with all the heavy taxes you mentioned? You can answer that question yourself. The more tax you pay here, the more it enters these thieves pockets.
      As far as I’m concerned this is a very lazy government! Get to work, diversify the economy, think outside the box, heavily reduce your outrageous allowances. Who exactly do you want to tax? The civil servant you havnt paid since last year, or the man who sells recharge cards in traffic? Its only in Nigeria that the solution to hardship is more hardship. Pathetic!

    • ifeanyi

      January 27, 2016 at 3:52 pm

      My Nuna ..my friend…no be quarrel now??? It is only a test of what is right as opposed what is favorable. Government Policies should be about the critical mass in Society and for the general good of society.

      It the story of the hen or the eggs; which comes first! Anyway…Never forget Development economics for Third World Nations is what we need at this point! For third World Countries…the Investment must come first before we start reaping the benefits. The people must contribute FIRST and then we see the result. Classical Economics for First World Countries cannot work for us. Europe and America cannot teach us how to create wealth. They couldn’t create it themselves. Their economy grew on the back of Slavery and Slave Trade.. They may teach us how to maintain one…but they cannot teach us how to create one!

      Lets learn fro China, Korea, Shanghai, Singapore, Hong Kong and Malaysia. These countries grew by looking inwards not outwards. They diversify their economy by Encouraging Local Production and depended on their own Industrialization for growth. The new Village movement brought Korea out of National Poverty because they demanded more from its people. They move from Third World to First World in 30 Years

      It has always been said,” Look Inward. Nobody would build Nigerians except Nigeria”. For the record, I trust Buhari with our Yams. He has the pedigree to protect it for us.

      About the money going into Private Pockets, we would have to judge it after 4 years…We have 4 years to Judge Buhari…but I honestly think this path is recommended!

      PS: Mind you Nigerians were voted the most happiest people on Earth as some time in past! Never take these narrative too serious…

    • Nuna

      January 27, 2016 at 4:31 pm

      We are still saying thesame thing. Looking inwards. Looking inwards is not equal to increased tax though. I have faithfully paid my taxes to LASG for 12 years and I still dont think there is anything to show for it.

  15. whocares

    January 27, 2016 at 11:59 am

    My friend once said only a bloody revolution can save Nigeria. Slowly as time goes by I am inclined to agree with him. Tax is even a long story. Let’s start from the elementary. Have you found the budget document dear government? just that, where is it? To lose that in the first place, a simple document. How much more millions of naira? Yet they climb our television screen, invade our newspaper, trample on people’s peace of mind with their feckery – no sorry “brilliant” ideas to reconstruct Nigeria? A so tan si, they will say east or west home is the best. lool. let me go back to work. These things are enough to drive any sane person mad.

  16. nene+

    January 27, 2016 at 12:15 pm

    Empty heads resort to insults just to comment on BN!!!!! How empty is a brain who calls PDP entire followers idiot????

    Say your name don’t hide your identity!!! Poor upbringing at its overflow.. won’t be shocked if this is Zhara Buhari… or friends or another untrained charlatan.

    Is this the diversification you promised????
    America pay tax, can you do what America have done? Health care, food stamps, free education, security and safety, tax rebate, job provision? The people you charge here don’t have jobs, lazy govt who resorts to taxing artisans, hawkers,beggars, pick pockets,sex traders, for using bank services is lame and bound to fail!!!!!! Why won’t the thieves steal hard to pay VAT and stamp duty nonsense???

    You brat insult both non charmed APC and PDP alike for criticising multiple tax imposition???

    Go back home, go and learn to talk and write….

    Nigerians enjoy your change…. meanwhile Buhari has jetted out yet again to Kenya…his cost per trip can pay the whole workers in two small state….and more….

    Pay up your stamp duty Nigerians baba will use it to visit the whole world before 2019. Ghana, Cameroon, Benin, Niger, America’s, Europe,Indis Asia, Australia next………………….flight mode….

    • poko. b21

      January 28, 2016 at 8:12 am

      Nene you must be an empty head too since you have retaliated with insults . And please do reveal your full name including any middle initials, ;dob; adddress; instagram; and bank account details.

  17. Adaeze Writes

    January 27, 2016 at 12:53 pm

    Things are already more expensive. 50 naira is almost the same as 20 naira in the market. Gino tin tomatoes have hiked up. A loaf of Bread that formerly sells for 220 now sells at 250 or 270, a pack of curry/thyme/food seasoning is also more expensive and the government is saying that things are going to get more expensive than it already is? What will happen to the Nigerians that are still struggling to make ends meet? Won’t this attract more robberies? As people who have tried so hard to sustain themselves and their families are not seeing any signs of hope!
    *sigh*

    For interesting stories, visit adaezewrites.com

  18. wale

    January 27, 2016 at 12:53 pm

    If you increase vat, which will increase the prices of goods and services, and the sales of goods drop, how will you make more through vat?, if people cannot afford what is being sold, they will boy cut some goods and those businesses will suffer from poor sales and shot down, then send people to the street jobless.

    I really do not know how you people got to power, you have no brain to think. Other countries might charge more vat, but to they loot their country and keep the money abroad? What is the level of minimum wage compare to these countries that charge 20 percent as vat? What is the level on unemployment? What is the lever of development?

    You do nothing but steal, scrap the senate and house of rep and introduce region governor and deputy governor to represent the 6 region w have and formulate policies at the federal level, while state governor continue to operate within their state over watch by the governor general and his deputy of each region.

    Demoracy is not for Africa

  19. cyndy

    January 27, 2016 at 3:26 pm

    @nene, my dear even if Pdp was corrupt as they claimed, i still prefer it over apc ! whats really going on ? this country is getting harder everyday ! now i even wish for biafra! but not with that silly smelly mouth Nnamdi Kanu! i wish God would send us another Ojukwu yes! this is not what was promised, where is the one proper meal a day for children in government primary schools? and even the electricity we get currently, was Jonathan project to be sincere, and even before he left office electicity was constant in his last days in office, our naira has devalued to zero. even our oil has become nothing ! chai Nigeria are you still the giant of africa? i thought with this new “change” educational grants could be granted to the poor willing to go to school without the basic support from their family members. now vat again, how will the poor people living under 1 dollar a day survive? how? I WAS PROUD TO BE A NIGERIAN BUT NOT ANYMORE!

  20. Prec

    January 27, 2016 at 5:15 pm

    Nigeria is broke, instead of looking for poilicies that work, let’s remove subsidies to make the average Nigerian’s life harder, Nigeria is broke let’s increase tax for the 20 percent that’s already paying instead of putting systems that will make sure that the other 80 percent is paying, and maybe we’ll probably see that we don’t need to hike it up when that is done. I’m not going to pretend to understand the economics of this all, but what I know is that every time! solutions are brought its never to affect the politicians who’ve placed us in this mess in the first place, they mess up, we pay, how about cut their salaries first, it’s not like when they hike up the tax they’re going to do anything with the money, they’ll just create committees of nothing, with their family members and share the money.

    Nigerians we are not angry enough, we are not angry enough, we are not angry enough! I’m telling you. The only good thing to come out of this is that they keep pushing, and pushing us so we can break! So we can finally say this nonsense is enough, it’s enough now so we can fight back.

  21. nene

    January 27, 2016 at 6:20 pm

    things are going to get bad. armed robbery and kidnappings will also come back. everyone should brace themselves. i see riots and instability in this country with the way things are going. why are our leaders so wicked? why is the average nigerian so corrupt? we need discipline in this country.

  22. ak

    January 27, 2016 at 6:41 pm

    lol it is the same fate that will happen like when they removed the Fuel Subsidy… the money will continue to disappear.

    #BeMoreEfficient #Accountability

  23. Cindy

    January 27, 2016 at 8:22 pm

    Shut your mouth! So in your stupid mind the previous administration was better. That this present government is bad doesn’t mean the previous was good. Mtchew!

  24. Hawt Talk With Tosan

    January 27, 2016 at 9:25 pm

    If only the taxes would be appropriately disbursed!

  25. tilda

    January 28, 2016 at 3:39 am

    . I feel sorry for my fellow nigerians my heart bleeds for them. Glad I don’t have to live in that hell Hole. It’s like the land is patched and thirsty for blood and it’s going to get it by force, whether by the unjust sacrifice of the poor by the corrupt, break down of order (social anarchy) or by righteous revolution. At present the land quenches it’s thirst by the sweat and blood of hardworking nigerians. It’s so sad

  26. letty

    February 18, 2016 at 5:27 pm

    I guess when the masses start falling down dead on the streets from hunger and stress the govt will w wise up

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