The Federal Government has presented N10.33 trillion ($33.8 billion) budget proposal for 2020 to the National Assembly for approval.
The government said it is working to restore the Budget cycle from January-December format for proper planning and implementation.
Presenting the budget to the joint session of the upper and lower chambers on Tuesday, Nigerian President Muhammadu Buhari presented a record said the 2020 budget is based on a new VAT rate.
Nigeria raises VAT to 7.5% from 5%
Recently, the government announced an increase in the country’s Value Added Tax (VAT) from 5% to 7.5% to generate more revenue and cater for infrastructural development, a move, some citizens say it will worsen economic activities.
Nigeria to fund key infrastructural activities will VAT surplus
President Buhari said the increased revenues from the VAT will be used to fund education, health, and key infrastructural activities.
“We will raise the threshold for VAT registration to N25 million turnover per annum, to bring relief to our small(est) businesses.
“VAT Act already exempts Pharma, Educational items and basic commodities. We will expand the exemptions,” he added.
