Nigeria’s VAT is low – Osinbajo

Vice-President Yemi Osinbajo says the new value-added tax (VAT) rate of 7.5 percent is low compared to that of other African countries.

He said this while speaking at the Inspiration Conference 2020 organised by the Redeemer’s Men Fellowship in Lagos on Saturday, NAN reports.

He was quoted saying that, “Ghana has 12.5 per cent; Cameroun has 19.25 per cent; Mexico with 16 per cent; South Africa at 15 per cent and Egypt at 14 per cent. ”

“To make things easier for the common man, we have exempted 16 classes of food items, tampons, sanitary towels, and tuition fees from nursery to tertiary.

“Also, before the Finance Act, many companies operating in the country without physical presence escaped taxation.

“Most digital companies made significant revenue from e-commerce, online advertising and the likes, but were not taxed.”