The Federal Government has disclosed that it will begin implementation of the 7.5% Value-Added Tax (VAT) from February 1, 2019.
While speaking at the inauguration of the Federal Inland Revenue Service (FIRS) board, the Minister of Finance, Zainab Ahmed, confirmed that the law was set to take effect after all necessary administrative procedures had been completed. She added that the fixed date had settled all confusion on the implementation of the law.
“The implementation of the Value Added Tax is to take effect from February 1, 2020, after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice,” Ahmed said.
Meanwhile, Ahmed stated that the bill took effect immediately it was signed into law but noted that there were certain administrative procedures and formalities to be finalized before commencement. She added that the Finance Act boosts the revenue available to finance key government projects, especially in the areas of health, education and critical infrastructure.
She admonished the FIRS board members to ensure that the smooth operation of the various tiers and arms of government in Nigeria, as well as the well-being of the Nigerian people, was a crucial responsibility.
[READ MORE: Air travelers may soon witness fare hike due to VAT increase)
The newly appointed Executive Chairman of the FIRS, Muhammad Nami, promised to reposition the FIRS for improved performance, adding that an institutional framework rebuilding was being carried out by strengthening the capacity of departments and units to deliver on their mandates and improved collaboration with stakeholders to remove critical bottlenecks in the tax system.
Mr Nami also said the FIRS board would see to the review of structures for optimal performance; capacity building on the finance law and other tax programmes; review of Tax Clearance Certificate administration process, and revamping of the Integrated Tax Administration System.
