Economy
SOME financial experts have expressed support for the Federal Government’s exemption of Value Added Tax (VAT) on 63 items, saying that the move will promote economic growth.
They said this in separate interviews with the News Agency of Nigeria (NAN) in Lagos, on Friday.
The experts also advised the government on the need for transparency and careful implementation.
Prof. Tunde Adeoye at the Department of Economics University of Lagos, described the VAT exemption as a positive fiscal measure.
“However, the government should ensure that the policy is transparent so that the exempted items do not return to being taxed.
“While the policy could reduce the cost of goods, it may also lead to a decline in government revenue,” Adeoye said.
He emphasised the need for the government to address revenue leakages and increase oil production to boost the country’s earnings.
He suggested that the government could focus on diversifying the economy, particularly by harnessing the country’s vast mineral resources.
Similarly, Mr Samuel Agbelaye, President of the Chartered Institute of Taxation (CITAN), stated that the VAT exemption would yield positive results.
“This demonstrates that taxation is not just for revenue generation but can also serve as a tool for economic development,” Agbelaye said.
He explained that exempting certain items from VAT would increase productivity and create job opportunities, particularly for the youth.
Agbelaye added that the exemption, particularly in light of exchange rate fluctuations, would help cushion economic challenges for low-income earners.
Dr Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), also commended the VAT exemption as a step in the right direction.
“Reducing VAT for businesses alone won’t solve all the challenges, but it’s part of the solution.
“This move will help ease pressures on businesses, which will benefit from the relief,” Yusuf said.
He noted that while the VAT exemption is a positive development, there are larger business issues that still need addressing.
“We are awaiting the government’s economic stabilisation plan, and we expect further details on measures to support businesses,” Yusuf added.
The News Agency of Nigeria(NAN) reports that the Federal Government, on Oct. 3, announced the exemption of 63 items from Value-Added Tax (VAT), as part of its latest fiscal reforms.
This was revealed by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, via a post on X (formerly Twitter).
The exemptions are outlined in the official ‘Value Added Tax (Modification) Order, 2024.(NAN)
A.I
Oct. 18, 2024
Tags: Dr Muda Yusuf Mr Samuel Agbelaye Prof. Tunde Adeoye
