The Federal Inland Revenue Service (FIRS) yesterday explained that Value Added Tax (VAT) is a consumption tax primarily designed to support poor people, and not to create hardship for them.

The Chairman of FIRS, Babatunde Fowler allayed fears that the increase in VAT may cause hardship for the poor, stating that VAT is charged on consumption and capacity to consume. He said: “When you don’t consume certain categories of goods and services, you are not liable to pay VAT charges on those items.

VAT is not charged on all medical and pharmaceutical products. It is not charged on basic food items. It is not charged on books and educational materials. It is not charged on baby products, fertilizers, locally produced agricultural and veterinary medicine. VAT is not charged on farming machinery and farming transportation equipment.

“VAT is not charged on all exports, plant machinery and goods imported for use in Export Processing Zones and free trade zone: Provided that 100 per cent production of such company is for export.

“Other services exempted from VAT are medical services, services rendered by Community Banks, People’s Bank and Mortgage Institutions, plays and performances conducted by educational institutions as part of learning and all exported services are exempted from VAT.
Fowler said some people misunderstood what VAT is. VAT is a consumption tax. If you don’t have money to purchase certain categories of goods and services and you don’t consume them, then VAT is not your problem. “VAT is used to assist the needy.

VAT provides support for the needy, not a hardship on them; 85 per cent of VAT collected is shared among states for them to provide free education, free health services, provide basic amenities among others. “We can see what the Federal Government is doing with the tax money. Look at the rail system, the Abuja-Kaduna rail is complete. Look at the Lagos-Ibadan expressway, look at the education system, the school feeding programme among others. If at the state level, your government cannot justify the taxes you pay to them, you have the right to vote them out in the next four years,” Fowler said, according to a statement from FIRS.

Fowler said if countries such as United Arab Emirate (UAE), Saudi Arabia which are rich in oil resources would be laying emphasis on taxation, Nigeria should also emulate them.
The FIRS Chairman also explained that Nigeria’s economy is only picking up in recent times because former administrations over-looked tax reforms and depended on the depletable mineral resources.

SOURCE: https://www.trendingaccounting.com/2019/03/vat-designed-to-support-poor-says.html

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Wailers can wail we are proud Zombies

See below

Augustinefixed2:
See below

You wan post scam betslip again abi?

SCAM!!!

wat of toll gate fee ?


will vat from sales of alcohol be used in the north too ?



pls Abaribe should ask this question in plenary asap enough of this leeches

Hmmn but it's mostly the poor who pay VAT, big men try to find a way not to.


Edited: Comment made was based on VAT paid on sales/Income.

The first to comment guy on this post is very sick, Zombies, Buhari jazz una?

Why is it so difficult for slash the salaries of political officers?

You don't give businesses the enabling environment to thrive, and you want to drain the little ones that are managing to break even.

The poor eventually ends up bearing the brunt of their oluwole policies.

This country is fried.

Phew!

They have forgotten that an hungry man is an angry man!

Other African countries are using technology to move ahead.... Our leaders still thinks good roads are our problem, the colonial mentality.

Sakamaje

"VAT is used to assist the needy"... Another Lie Mohd has emerged! Preposterous Statement.

the national orientation agency is no longer working so there is discommunication between government and the people

We know the benefits and gain of VAT in a sane society. Public financing method that is used as a subsidy for redevelopment, infrastructure, and other community-improvement but in Nigeria case, the money is embezzled by politicians.

mistyebby:
SCAM!!!

Big scam,
They quote big countries on taking from the masses but don't quite them on giving back to the masses through good infrastructures. Beautiful idiots.

Indeed. In a country where the poor are repeatedly treated like lepers.

Blakjewelry:
the national orientation agency is no longer working so there is discommunication between government and the people

Is there any government agency or body that works?

Apc think they are smart. Who exactly is the poor man. The northern almajiri’s or those who can’t go to kfc for a decent meal? Those who leave in the bushes, jungles and under bridges?

So the government workers earning the minimum wage are not poor?

Hahahhahahahbababa

una go soon see flower...

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They will be talking about sane and developed country as if they are using it the same way. We are paying tax in this country for our leaders to flex with it, give us back small to be hailing them, still use the tax to travel to these country they are shouting for medical treatment, not even our hospitals are standard. But those country using theirs to better the lives of their citizenship.

When will you remove the VAT charged on my transfer to my family members......Oshi

Lie lie

But I see VAT on every purchase I make, it makes up the price of the item..mention the particular product u think Nigerians dont consume that doesn't require VAT...we consume everything

ok

Hey

Can anyone here mention anyone he/she knows that got any part of the $300m abacha loot that buhari shared the poor

Interesting




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faithfull18:
Hmmn but it's mostly the poor who pay VAT, big men try to find a way not to.

People pay vat without being asked to. It is included in the price at purchase.