Share with your friends

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.


Related content

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

The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.

Connect with us


Want to do business with KPMG?


loading image Request for proposal