7.5% VAT Takes Effect February 1 as FG Inaugurates FIRS Board
THE Federal government has said that the implementation of Value Added Tax (VAT) will to take effect from February 1, 2020.
This is after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice.
Minister of finance Mrs. Zainab Ahmed made this known in Abuja, yesterday during the inauguration of the Board of Federal Inland Revenue Service (FIRS). She noted that “once a bill is signed into law, it takes effect immediately but it is to note that there are certain administrative procedures and formalities to be finalized before commencement.
The announcement of the new take-off date overrules the earlier submission by the Accountant-General of the Federation that the implementation of the new VAT regime had commenced.
According to the minister, “the new date has put to rest speculations about the effective take-off date for the new VAT regime.”
The Finance Minister also revealed that “Tax Appeal Tribunals have identified new cases. So they have reported 75 new tax appeals with a disputed value of N73.3 billion and $19.5 million.”
The minister while inaugurating the new board reminded the FIRS chairman and his members that being members of a country’s tax administration comes with huge responsibility and they must work hard to show that their appointments were well deserved.
She challenged the new board to come up with ideas and strategies that will improve the country’s tax administration.