The Federal Executive Council of Nigeria at its meeting on 11th September, 2019 approved a proposal to increase the current rate of Value Added Tax (“VAT”) on taxable goods and services in Nigeria from 5% to 7.2%.
This proposal comes shortly after President Muhammadu Buhari assented to the Nigeria Police Trust Fund (Establishment) Act (the “Act”) on 24th June, 2019 which imposes a levy of 0.005% on the “net profit of companies operating business in Nigeria”.
In this document, Afriwise contributor Udo Udoma & Belo-Osagie highlights some of the provisions of the Act and comments on the proposed increase in VAT and the possible impacts which these changes could have on companies doing business in Nigeria.