5% VAT On Online Purchases: Nigerians React

Nigerians are reacting to the Federal Government’s proposed five per cent Value Added Tax (VAT) on online purchases.

They are displeased and also fear that the introduction of the policy could add to a growing number of existing charges that bank debit cardholders already face.

In addition to the complaints, Nigerians say that, it would adversely affect tech startups and businesses which have contributed significantly to job creation.

Meanwhile, the government says that the reason for the policy is to raise revenue to fund the 2019 N8.9 trillion budget.

Speaking with journalists, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Babatunde Fowler, said the government might appoint banks as agents to deduct five per cent VAT on all local online purchases with a bank card.

He further said that the preferred choice for the government would be expanding the country’s tax base rather than increasing existing VAT.

The policy could be in place by early next year

Fowler added

taraj

I just can't help it, I am so passionate about Media.

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