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.

The Quick Figures From 2020 Budget Proposal

 

Proposed 2020 Budget
An overview of President Buhari’s Proposed 2020 budget

 

 

President Muhammadu Buhari on Tuesday presented the budget for the 2020 fiscal year to the joint session of the National Assembly.

The budget is based on an oil price benchmark of US$57 per barrel, a daily oil production estimate of 2.18 mbpd. and an exchange rate of N305 per US Dollar.

Along with the budget proposal, a Finance Bill was presented to the National Assembly for consideration and passage into law.  The draft Finance Bill proposes an increase of the VAT rate from 5% to 7.5%. The 2020 budget revenues estimates is based, in part, on the new proposed VAT rate.

The sum of N8.155 trillion is estimated as the total Federal Government revenue in 2020 and comprises oil revenues of N2.64 trillion, non-oil tax revenues of N1.81 trillion and other revenues of N3.7 trillion. 

An aggregate expenditure of N10.33 trillion is proposed for the Federal Government in 2020. The expenditure estimate includes statutory transfers of N556.7 billion, non-debt recurrent expenditure of N4.88 trillion and N2.14 trillion of capital expenditure (excluding the capital component of statutory transfers). Debt service is estimated at N2.45 trillion, and provision for Sinking Fund to retire maturing bonds issued to local contractors is N296 billion.

 

Statutory Transfers

The sum of N556.7 billion is provided for Statutory Transfers in the 2020 Budget and includes:

  1. N125 billion for the National Assembly;
  2. N110 billion for the Judiciary;
  3. N37.83 billion for the North East Development Commission (NEDC);
  4. N44.5 billion for the Basic Health Care Provision Fund (BHCPF);
  5. N111.79 billion for the Universal Basic Education Commission (UBEC);
  6. N80.88 billion for the Niger Delta Development Commission (NDDC), which is now supervised by the Ministry of Niger Delta Affairs.

 

Recurrent Expenditure

The non-debt recurrent expenditure includes N3.6 trillion for personnel and pension costs, an increase of N620.28 billion over 2019. This increase reflects the new minimum wage as well as our proposals to improve remuneration and welfare of our Police and Armed Forces. You will all agree that Good Governance, Inclusive Growth and Collective Prosperity can only be sustained in an environment of peace and security.

Overhead costs are projected at N426.6 billion in 2020.

An overview of President Buhari's Proposed 2020 budget
An overview of President Buhari’s Proposed 2020 budget

Capital Expenditure

An aggregate sum of N2.46 trillion (inclusive of N318.06 billion in statutory transfers) is proposed for capital projects in 2020.

At 24 percent of aggregate projected expenditure, the 2020 provision falls significantly short of the 30 percent target in the Economic Recovery and Growth Plan (ERGP) 2017-2020.

Some of the key capital spending allocations in the 2020 Budget include:

  1. Works and Housing: N262 billion;
  2. Power: N127 billion;
  3. Transportation: N123 billion;
  4. Universal Basic Education Commission: N112 billion;
  5. Defence: N100 billion;
  6. Zonal Intervention Projects: N100 billion;
  7. Agriculture and Rural Development: N83 billion;
  8. Water Resources: N82 billion;
  9. Niger Delta Development Commission: N81 billion;
  10. Education: N48 billion;
  11. Health: N46 billion;
  12. Industry, Trade and Investment: N40 billion;
  13. North East Development Commission: N38 billion;
  14. Interior: N35 billion;
  15. Social Investment Programmes: N30 billion;
  16. Federal Capital Territory: N28 billion; and
  17. Niger Delta Affairs Ministry: N24 billion.

 

Budget Deficit

The Budget deficit is projected to be N2.18 trillion in 2020. This includes drawdowns on project-tied loans and the related capital expenditure.

This represents 1.52 percent of estimated GDP, well below the 3 percent threshold set by the Fiscal Responsibility Act of 2007, and in line with the ERGP target of 1.96 percent.

 

VAT Increase More Beneficial To States And LGs, Says Finance Minister

File photo of Mrs Zainab Ahmed, Minister of Finance

 

The Minister of Finance, Mrs Zainab Ahmed has said that the proposed increase in Value-Added Tax (VAT) from 5 to 7.5 per cent will be more beneficial to state governments and Local Government Areas (LGAs) in the country, many of which are already facing difficult conditions.

This was disclosed in a statement issued by the Minister’s SA on Media and Communication, Yunusa Abdullahi on Friday.

According to Mrs Ahmed, the proposal is subject to legislative intervention by the National Assembly who will have to amend the Revenue Act to reflect the proposed increase.

She added that the increase will exempt the basic necessities such as food, medicines and education.

“The benefit of an increase in VAT is, therefore, more beneficial to state governments and Local Government Areas (LGAs) in the country, many of which are already facing difficult conditions. The proposed increase in VAT is therefore expected to create additional fiscal space.

“The proposed increase is however subject to legislative intervention by the National Assembly who will have to amend the Revenue Act to reflect the proposed increase.

“The existing VAT Act exempts the basic necessities such as food, medicines and education which therefore minimises the impact on the poor and vulnerable segments of the Nigerian society from the burden thereof. It is expected that the exemptions will be maintained in the amended Act.”

RELATED: FG To Increase VAT From 5 To 7.5 Percent

Mrs Ahmed maintained that if the increase is correctly implemented, it could bring in huge revenues for the country and reduce fiscal deficit burden.

“It is gladdening that the VAT increase if correctly implemented, could bring in huge revenues, which would actually reduce the fiscal deficit burden.

“The government’s borrowing programme could then ease and certainly the financially affected states and local governments could later focus on issues like poverty reduction, healthcare and power generation and transmission.

“According to the industry experts, the VAT increase, if enforced properly, forms part of the fiscal consolidation strategy for the country. It could, in fact, help address the fiscal deficit problem and the revenues estimated to be collected could actually mean lowering of the fiscal deficit burden for the government across board.”

The Federal Government on Wednesday said that consultations will begin at all levels on the increase from 5 – 7.5 per cent.

Nigeria’s VAT Revenue Increases In 2019 Second Quarter

 

The Nigerian Government has generated the sum of N311.94 billion from Value Added Tax (VAT) in the second quarter of 2019.

The National Bureau of Statistics (NBS) disclosed this in a report titled ‘Sectoral Distribution Of Value Added Tax (Q2 2019)’ published on Tuesday.

In the report, the figure generated in the Q2 is higher than the N289.04 billion generated in the first quarter of the year in review.

It revealed that other manufacturing generated the highest amount of VAT with a sum of N34.43billion.

READ ALSO: Beware Of Fraudulent Loan Offers, CBN Warns Nigerians

According to the NBS, this is closely followed by Professional Services which generated N29.58bn, while Commercial and Trading generated N16.27bn and Mining generated the least with a figure of N50.60millon.

The agency explained that the data used in preparing the report were provided by the Federal Inland Revenue Service (FIRS) and verified and validated by the NBS.

The Executive Summary of the report read:

Sectoral distribution of Value Added Tax (VAT) data for Q2 2019 reflected that the sum of N311.94bn was generated as VAT in Q2 2019 as against N289.04bn generated in Q1 2019 and N269.79bn generated in Q2 2018 representing 7.92% increase QoQ and 16.95% increase YoY.

Other manufacturing generated the highest amount of VAT with N34.43bn generated and closely followed by Professional Services generating N29.58bn, Commercial and Trading generating N16.27bn while Mining generated the least and closely followed by Pharmaceutical, Soaps & Toiletries and Textile and Garment Industry with N50.60mln, N250.09mln and N316.91mln generated respectively.

Out of the total amount generated in Q2 2019, N151.56bn was generated as Non-Import VAT locally while N94.90bn was generated as Non-Import VAT for foreign. The balance of N65.48bn was generated as NCS-Import VAT.

Also, see the table below:

 Q1 2019 Q2 2019 * Quarter on Quarter % Year on  Year %
 Classification Value Added Tax Value Added Tax Q1 2019 / Q2 2019 Q2 2019 / Q2 2018
 Agricultural and Plantations                                     627,309,855.38                                     738,117,007.17                                     17.66                                   (5.54)
 Automobiles and Assemblies                                     421,443,588.76                                     481,438,702.64                                     14.24                                   (1.50)
 Banks & Financial Institutions                                  4,195,911,497.61                                  4,060,359,569.91                                     (3.23)                                (14.47)
 Breweries.Bottling and Beverages                                10,835,290,704.46                                11,272,962,075.34                                       4.04                                  19.49
 Building and Construction                                  2,744,836,873.65                                  2,400,570,624.59                                   (12.54)                                (10.14)
 Chemicals, Paints and Allied Industries                                     522,706,937.42                                     543,426,279.34                                       3.96                                  71.35
 Commercial and Trading                                14,924,509,446.19                                16,269,201,434.21                                       9.01                                     1.00
 Conglomerates                                  1,512,442,362.40                                  1,047,208,422.52                                   (30.76)                                   (7.99)
 Federal Ministries & Parastatals                                  7,937,268,043.87                                  8,109,935,510.66                                       2.18                                  46.15
 Gas                                  1,529,466,433.36                                  1,074,711,768.56                                   (29.73)                                (15.33)
 Hotels and Catering                                  1,615,988,078.22                                  2,124,908,064.49                                     31.49                                  31.38
 Local Government Councils                                     507,277,849.92                                     495,197,499.61                                     (2.38)                                  36.79
 Minning                                       59,884,887.89                                       50,598,095.44                                   (15.51)                                     5.74
 Not Available                                  4,016,993,631.69                                  3,768,879,140.15                                     (6.18)                                   (1.89)
 Offshore Operations                                     529,173,488.54                                     657,941,208.43                                     24.33                                  20.22
 Oil Marketing                                  2,340,806,300.43                                  1,996,390,157.13                                   (14.71)                                  15.43
 Oil Producing                                  8,490,827,446.86                                  7,811,745,534.66                                     (8.00)                                   (0.33)
 Other Manufacturig                                31,423,299,458.75                                34,429,042,995.83                                       9.57                                     6.07
 Petro-Chemical and Petroleum Refineries                                     956,166,806.78                                  1,198,575,081.52                                     25.35                                (15.91)
 Pharmaceutical,Soaps and Toileteries                                     201,580,318.33                                     250,092,740.05                                     24.07                                  63.03
 Pioneering                                  3,522,672,251.92                                  2,361,324,014.43                                   (32.97)                                  16.69
 Professional Services                                24,315,013,565.66                                29,583,674,334.79                                     21.67                                  47.79
 Properties and Investments                                     940,729,119.25                                  1,058,623,649.02                                     12.53                                   (1.55)
 Publishing,Printing, Paper Packaging                                     365,182,010.80                                     449,848,248.54                                     23.18                                (14.80)
 State Ministries & Parastatals                                  8,050,491,035.62                                10,445,379,901.29                                     29.75                                  11.90
 Stevedoring, Clearing and Forwarding                                  1,743,878,248.89                                  1,132,417,313.43                                   (35.06)                                (16.71)
 Textile and Garment industry                                     298,137,975.21                                     316,908,615.69                                       6.30                                   (8.44)
 Transport and Haulage Services                                  2,434,185,088.46                                  7,432,803,909.43                                  205.35                                278.15
 Sub-Total (Non-Import VAT) Local                              137,063,473,306.32                              151,562,281,898.87                                        10.58                                     17.33
 Non-Import (foreign) VAT                                98,967,007,748.51                                94,904,294,115.91–                                        4.11                                     16.92
 NCS-Import VAT                                53,007,856,392.82                                65,476,489,855.17                                        23.52                                     16.12
 Grand Total                     289,038,337,447.65                     311,943,065,869.95                                          7.92                                     16.95

VAT Increase Can Further Slow Down The Economy, Tinubu Tells FG

VAT Increase Can Further Slow Down The Economy, Tinubu Tells FG
APC National Leader, Bola Tinubu, speaks at the 11th Bola Tinubu Colloquium in Abuja on March 28, 2019. Photo: Channels TV/ Sodiq Adelakun.

 

The national leader of the All Progressives Congress (APC), Bola Tinubu, has advised the Nigerian Government against the planned to increase the Value Added Tax (VAT).

Addressing a gathering at the Bola Tinubu Colloquium on Thursday in Abuja, he warned that such decision was capable of worsening the nation’s economy.

“Consumers’ spending is slipping, and this is where I will stop and appeal to Professor Yemi Osinbajo, the Vice President, and his team to put a huge question mark on any increase of VAT, please,” the former governor pleaded.

He added, “If we reduce the purchasing power of the people, we can further slow down the economy.”

READ ALSO: Economy Will Be More Vulnerable, Manufacturers Warn Nigerian Govt Against VAT Increase

Officials of the Federal Ministry of Finance had defended the Medium-Term Expenditure Framework (MTEF) that VAT be increased by 50 per cent during a presentation in the Senate on Wednesday.

But the government’s decision was greeted by criticism from stakeholders in the business sector, including the Manufacturers Association of Nigeria (MAN) which said VAT increase would leave the economy in a more vulnerable state.

In its bid to generate more revenue, Tinubu who advised the government to reconsider its decision suggested another way to go about it.

He said, “Let’s widen the tax net. Those who are not paying now, if it is inclusive of Bola Tinubu, let the net get bigger and we take in more taxes and that is what we must do in the country, instead of the additional layer of tax.”

According to him, Nigeria is still in the process of defining itself politically and economically.

The APC leader, however, noted that it was tempting and easy to borrow indiscriminately from the nations that have mastered the act of democratic governance and have achieved economic prosperity.

He said the nation cannot afford to lay back and must work hard not in mindless devotion to the ways of the other nations to achieve any durable progress in the process.

VAT Increase: Economy Will Be More Vulnerable, Manufacturers Warn Nigerian Govt

VAT Increase: Economy Will Be More Vulnerable, Manufacturers Warn FG

 

The Manufacturers Association of Nigeria (MAN) has asked the Federal Government to tread with caution in the drive for improved revenue.

The Director-General of MAN, Mr Segun Ajayi-Kadir, said this in a statement on Wednesday while reacting to the plan by the government to increase the Value Added Tax (VAT).

Officials of the Federal Ministry of Finance had defended the Medium-Term Expenditure Framework (MTEF) that VAT be increased by 50 per cent during a presentation in the Senate.

READ ALSO: ‘They Have Taken Us Hostage,’ Agric Minister Decries Nigeria’s Rate Of Food Imports

Ajayi-Kadir, however, said such policy was not ‘manufacturing friendly’, adding that implementing it would have a negative effect as a result of the planned increase in minimum wage.

“As plausible as the recommendation to increase VAT may look, implementing it at this time would boomerang because the timing is inappropriate, especially at a time when the minimum wage of N30,000 was just agreed upon,” he stated.

The MAN DG added, “This could send a wrong signal that the government is not sensitive to the plight of the low- and middle-income earners, who are clearly in the majority. The Nigerian economy will be in a more vulnerable state if VAT is increased.

“No controversy, the burden of the tax would be shifted to the Nigerian consumers that are already struggling, the economy would certainly experience demand crunch, inventory of unsold items would soar, profitability of manufacturing concerns would be negatively impacted, many factories will witness serious downturn or wind down operations.”

Ajayi-Kadiri, therefore, advised the government to widen the tax net rather than increase the rate in order to meet the growing need for more revenue to address the development objective of the country.

He also appealed to the government not to increase the VAT at this time but consider the implementation of the afore-mentioned tax specific recommendations.

The MAN DG asked the government to continue to ramp-up support for the manufacturing sector in the best interest of the people.

PDP Rejects Moves To Increase VAT, Says Buhari’s Administration Is Insensitive

 

The Peoples Democratic Party (PDP) and the party’s Presidential Campaign Organization (PPCO) have rejected the plans by the Federal Government to increase the Value Added Tax on some items in the course of the year

According to the PDP and its campaign organization, the move to increase VAT is anti-people and not in the best interest of Nigerians.

The opposition party said the plan is insensitive on the part of the government.

“President Buhari is aware that the increase in taxes directly results in an increase in the costs of common goods and services on which families depend for survival, yet he is imposing them on the system.

READ ALSO: [VIDEO] I’m Committed To Privatising NNPC, Even If They Kill Me – Atiku

“It is indeed heartrending that at a time other leaders all over the world are seeking ways to lift burdens off the shoulders of their citizens, President Buhari is rather planning to put more burden on Nigerians, if he is allowed to continue in office beyond May 29” PDP said.

The party also alleged that President Buhari lacks the capacity to harness the nation’s resources to create wealth for the benefit of Nigerians, but “harbours the plan to fleece the people with stringent taxes”.

According to a statement signed by Kola Ologbondiyan, the PPCO spokesman, the PDP claimed that the re-election of President Buhari will “further plunge the nation into hardship”.

It urged Nigerians to vote wisely in the coming elections and ensure that the PDP is voted in, adding that a vote for the opposition will see to a transformation of Nigeria’s economy.

 

FG To Increase VAT – Finance Minister

 

The Minister of Finance, Mrs Zainab Ahmed, says the Federal Government will increase the Value Added Tax on some items in the course of the year.

Some of the items according to her, will include carbonated drinks as well as some luxury items.

She stated this on Wednesday at the launch of the Strategic Revenue Growth Initiative in Abuja, targeted at improving revenue sources for government.

Read Also: President Buhari Pledges To Take Proactive Steps In Ending Illegal Tax Collection

Ahmed said the move had become imperative as a result of the fiscal challenges the government is confronted with in providing infrastructure for its people.

She, however, noted that the increment will only be done after due consultation with the National Assembly.

“There will be a VAT increase. During the course of 2019, we will have clarity as to which items and what the rate will be and we will have to take a request to the National Assembly for amendment before it takes effect.

“There is also going to be luxury tax.

Already, there is luxury tax imposed on things like jets, yachts and few exceptional items that are classified as luxury and the Chairman FIRS will speak to that but we are contemplating increasing excise duties on carbonated drinks just like we have excise duties now on Tobacco and alcohol.

“But this is going to be a subject of study because we have to identify which ones will be affected and the best way in which to apply the taxes”.

FG Asks States To Remit N41bn VAT To FIRS

FIRS

 

The Federal Government has asked states to remit N41bn Value Added Tax (VAT) to the Federal Inland Revenue Service (FIRS).

The Jigawa State Governor, Badaru Abubakar, disclosed this to journalists on Thursday after the National Economic Council (NEC) meeting in Abuja.

Governor Abubakar said that the council was confident that the states owing will remit to the FIRS.

He said “We had a briefing from the chairman of the FIRS and it dwelt on two aspects of tax issues; one is on the value-added tax(VAT) that is being collected by states.

“He informed the states what their positions are and the outstanding due to the states of about N41 billion”.

Governor Abubakar noted that there was an improvement in tax remission from states in comparison with that of last year.

“So far, from January to date, about N40 billion was remitted from the states, which has a significant increase compared to the what happened last year”, he said.

The Jigawa governor further stated that an audit was going on in many states on how to reconcile figures between what the states had and what the FIRS had.

No Intention To Increase Taxes, Udoma Tells National Assembly

No Intention To Increase Taxes, Udoma Tells National AssemblyThe Federal Government says it does not have any intention of increasing taxes in Nigeria.

The government, however, said it was working towards increasing its internally generated revenue through the broadening of its tax base.

The Minister of Budget and National Planning, Senator Udo Udoma, made this clarification on Monday, while responding to a comment by Senator Ben Bruce, at the public hearing of the Joint Session of the National Assembly on the 2017 Budget.

The minister said “a view has been expressed that we should not increase taxes, that we should broaden tax collection instead. That is precisely what is in the budget”.

No Increase At All In Taxes

Senator Bruce had given the impression that the Federal Government was about to increase taxes, a development he said would further worsen the economic fortunes of individuals and businesses.

Mr Udoma stated that “there is no increase in Value Added Tax (VAT), there is no increase in company’s income tax (and) there is no increase at all in taxes.

“But people who are not paying taxes must be made to pay. So the idea is to increase revenue by broadening the tax base, not by increasing taxes”.

Some economic experts who spoke at the session advocated government spending its way out of recession, partnering the private sector to speed up growth, planning for sustainable development, working with the State governments for integrated development, involving relevant experts, as well as consulting widely in planning, monitoring and evaluation of projects among others.

The Minister told the gathering, which also include Civil Society Organisations and private sector operators, that all the views expressed by the speakers have been captured in the 2017 Budget.

“The concerns that have been expressed are reflected in the budget; the need to spend our way out of recession is reflected in the budget, the need to spend in a way that will attract private sector spending is also reflected in the budget.

“Indeed, the thrust of the budget is to partner with private and development capital to leverage and catalyse resources for growth,” he said.

Achieving Economic Growth

Mr Udoma said the government realised that public resources cannot be enough to drive the development process, which is why the 2017 Budget was directed at catalysing private sector resources and using PPP for a number of projects.

“If you look at housing, we are putting in 100 billion Naira, but we are expecting another 900 billion Naira from the private sector.

“If you look at the EPZ, we are putting in 50 billion Naira, but we are expecting a huge injection of funds from the private sector.

“So, this budget is aimed at achieving economic growth, aimed at achieving diversification, aimed at improving our competitiveness, aimed at improving ease of doing business, aimed at creating more jobs and social inclusion, and aimed at improving governance and security,” he explained.

According to the minister, the spending is targeted at areas that have quick transformative potentials such as infrastructure and agriculture, manufacturing, solid minerals and services among others.

He pointed out that the present government believes in planning, stressing that “when we came in, we came out with a document – the Strategic Implementation Plan for the 2016 Budget of Change.

“We set out short term plans for one year. We started working on a longer term plan for four years 2017 -2020; and that involved extensive consultation”.

Economic Recovery and Growth Plan

Senator Udoma, who touched on partnership with state governments, told the audience that the Federal Government has consulted severally with State governors and with Commissioners of Planning in all the states.

“We are working closely with the States. We even organised a retreat in February 2016 with all the states. In all our initiatives, we are working with the states.

“(Also) on agriculture, we are working with the states; we even have task forces that involve state governors. So, we are working together with the states,” he said in a statement issued by his spokesman, Akpandem James.

The minister spoke further on the Economic Recovery and Growth Plan where he pointed out that the government consulted the private sector extensively.

“Indeed, just last week we met twice with captains of industry and members of the private sector to sit down and expose the plan to them and get their input.

“We are going to council soon and subsequently the plan will be launched before the end of the month,” he said.

Mr Udoma further explained that because government has bold plans which are tailored towards pulling Nigeria out of recession, investors are changing their attitude towards Nigeria.

“People have heard of our plans; they have seen the plan because we have had extensive consultations with our development partners – with the World Bank, with IMF (and) with UNDP.

“They have all been exposed to our plan and we have shown them what we are determined to do (because) that is why people are believing in Nigeria and investing in the Eurobond,” he disclosed.

The Path Of Growth

The minister was emphatic that the government has a clear vision and is on a determined path to get the economy out of recession.

“We are determined thereafter to begin to go back to the path of growth, a more diversified growth, not depending just on crude oil.

“We want to stimulate our manufacturing sector, we want to stimulate agriculture; so we have a coherent, cohesive plan,” he said.

The Minister of State, Mrs Zainab Ahmed, on her part, said government was determined to ensure that Nigerians experience inclusive growth this time around, “which is why we have the social intervention programme.

“The social intervention programme took off fully in October 2016 and all the four components of the SIP have now been rolled out in their first phases and we are scaling up on a monthly basis.” she said.

Mrs Ahmed added that the programme would benefit greatly from the support of the National Assembly, in order to ensure that the benefits were distributed equitably and that no needy citizens were missed out.

FG Says No Plans To Increase Value Added Tax

FG Says No Plans To Increase Value Added TaxThe federal government has been explaining how it will fund the 2017 budget at a session in Abuja.

According to the Minister of Budget and National Planning, Senator Udo Udoma, 11% of government’s projected revenue will come from recoveries of looted funds, which stands at 258 billion.

He said that there are no plans of increasing the value-added tax which is currently at 5%.

Niger State Gov. Presents 108bn Naira Budget For 2017

Niger State Gov. Presents 108bn Naira Budget For 2017The Niger State Governor, Abubakar Sani Bello, has presented 2017 fiscal year budget proposal of over 108 billion Naira to the state House of Assembly for passage.

The budget tagged ‘Budget of Consolidation’ is N22.9 billion and 21.27% more than the 2016 budget.

Governor Bello, while presenting the budget to the members of the state House of Assembly on Friday, said that the proposed budget comprises of a recurrent expenditure of N48,047,960,278 which is 44.45% of the budget and Capital Expenditure of N60,026,337,973 which is 55.55% of the budget size.

The Governor stated that the budget would be generated through Statutory Allocation of N50,695,206,724, Value Added Tax (VAT) of N8,793,474,040, Internally Generated Revenue of N12,403,874,117, Paris Club loan N13,400,000,000 and Capital Receipts of N22,781,770,379.

He further said that the budget would focus on Youth and Women Empowerment as they constitute a large part of the population; completion of projects; enhancement of IGR; re-introduction of teachers’ colleges; transformation of education and development of waterworks.

The Speaker of the state House of Assembly, Rt. Hon Ahmed Marafa, in his remark, said that the lawmakers would ensure the passage of the bill in a shortest possible time and would intensify effort in monitoring the 2017 budget performance so as to provide social amenities to the people in the state.

The Commissioner of Information, Culture and Tourism, Hon Jonathan Vatsa,  while reacting to the budget presented by the Governor to the state House of Assembly, says that the Governor has good intentions for the people of the state focusing on youths and women empowerment and re-introduction of teachers colleges, transformation of education in the state.