Categories: Business

Budget 2020: 10 Food Items Exempted From VAT

 

The Value Added Tax (VAT) Act in Nigeria exempts pharmaceuticals, educational items, and basic commodities.

President muhammadu while presenting the 2020 budget at the National Assembly on Tuesday, stated that VAT exemptions are expanding under the Finance Bill, 2019.

He noted specifically that section 46 of the Finance Bill, 2019 expands the exempt items to include some more items including food.

Below are some of the items that are exempted from the VAT act.

a. Brown and white bread;

b. Cereals including maize, rice, wheat, millet, barley and sorghum;

c. Fish of all kinds;

d. Flour and starch meals;

e. Fruits, nuts, pulses and vegetables of various kinds;

f. Roots such as yam, cocoyam, sweet and Irish potatoes;

g. Meat and poultry products including eggs;

h. Milk;

i. Salt and herbs of various kinds; and

j. Natural water and table water.

READ ALSO: Five Statutory Transfers Within The 2020 Budget

The President in his speech added that his proposals also raise the threshold for VAT registration to N25 million in turnover per annum, such that the revenue authorities can focus their compliance efforts on larger businesses thereby bringing relief for Micro, Small and Medium-sized businesses.

According to President Buhari, it is absolutely essential to intensify the nation’s revenue generation efforts.

He notes that his administration remains committed to ensuring that the inconvenience associated with any fiscal policy adjustments, is moderated, such that the poor and the vulnerable, who are most at risk, do not bear the brunt of these reforms.

Soonest Nathaniel

Disqus Comments Loading...
Share
Published by
Soonest Nathaniel
Tags: budgetVAT

Recent Posts

Tinubu Appoints Abdullahi Bello As CCB Chairman 

By the presidential pronouncement, Abdullahi Bello replaces Aliyu Kankia, who has been the acting Chairman…

26 mins ago

NAFDAC Cracks Down On Fake Bottled Water Syndicate In Rivers

The illicit scheme involved affixing pre-printed Eva labels onto the bottles and sealing them with…

3 hours ago

New Senegal President’s Home Village Full Of Pride, Hope And Advice

The uncle of the new president and his namesake Diomaye Faye said that running as…

3 hours ago

‘Caution Wike’, Sekibo, Secondus, Omehia, Others Pledge Support For Tinubu

They expressed their displeasure at the direction of events unfolding politically in the state and…

3 hours ago

Sean Combs, The Rap Mogul Facing A Web Of Sex Crime Allegations

He has no major convictions but has long been trailed by allegations of physical assault,…

3 hours ago

Russian Military Jet Crashes Into Sea Off Crimea

"A military plane has fallen into the sea," Governor Mikhail Razvozhayev said in a post…

4 hours ago