SWITZERLAND, OCTOBER 09 – President Muhammadu Buhari presented the 2020 Appropriation Bill, which outlines the 2020 budget, to the National Assembly on Tuesday.
The 2020 Budget, which the president calls the ‘Budget of Fiscal Consolidation’ is based on an increase in Value Added tax(VAT) from 5 to 7.5 per cent.
He 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.
The president reiterated that the extra money for the VAT will be used to fund health, education and infrastructure programmes.
He also highlighted the items that have been exempted from VAT, listed below:
- Education Items
- Basic Commodities
- Food Items, including,
- Brown and white bread;
- Cereals including maize, rice, wheat, millet, barley and sorghum;
- Fish of all kinds;
- Flour and starch meals;
- Fruits, nuts, pulses and vegetables of various kinds
- Roots such as yam, cocoyam, sweet and Irish potatoes;
- Meat and poultry products including eggs;
- Salt and herbs of various kinds; and
- Natural water and table water.