Nigeria has exempted 20 basic food items, including meat, poultry and table water and
sanitary pads from the new 7.5 percent Value Added Tax (VAT), which takes effect on
February 1, 2020.
Mr. Laolu Akande, the Senior Special Assistant to the President on Media & Publicity Office
of the Vice President, said on Sunday that the move was to ensure that the cost of living
does not rise for Nigerians.
“Several basic food items, locally manufactured sanitary towels, pads and tuition relating to
nursery, primary, secondary and tertiary education have been added to the exemption list
of goods and services on the VAT under the Finance Bill 2019, signed by President
Muhammadu Buhari last week, on the 13th January 2020,” local media reports on Monday
quoted Akande as saying.
The food include additives (honey), bread, cereals, cooking oils, culinary herbs, fish, flour and
starch, fruits (fresh or dried), live or raw meat and poultry, milk, nuts, pulses, roots, salt,
vegetables, water (natural water and table water).
Amongst other benefits, the law will consolidate efforts already made in creating the
enabling environment for improved private sector participation and contribution to the
economy as well as boost states’ revenues.
The Finance bill, according to the Nigerian president, will support the funding and
implementation of the 2020 Budget.
“We shall sustain this tradition by ensuring that
subsequent budgets are also accompanied by a Finance Bill,” he said.
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MM/GIK/APA