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Nigeria: Budget proposals for 2020; expenditures financed by VAT rate increase

Nigeria: Budget proposals for 2020

The president today (8 October 2019) presented the federal government budget proposals for 2020.


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Under the budget proposals, expenditures are expected to be financed in part by additional revenue that would be derived from a proposed increase in the value added tax (VAT) rate from 5% to 7.5%. The effect of the VAT rate increase on taxpayers would be managed by introducing a VAT exemption threshold for businesses with a turnover of less than N25 million per annum and by expanding the list of VAT exempt items to include educational items and other basic commodities. The additional revenue generated from VAT would be used to fund healthcare, education, and infrastructure projects.

Read an October 2019 report [PDF 108 KB] prepared by the KPMG member firm in Nigeria

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