Obidients are saying President Bola Tinubu will add 7.5% VAT on Fuel and Diesel from June 2023

Information reaching Kossyderrickent has it that Obidients are saying President Bola Tinubu will add 7.5% VAT on Fuel and Diesel from June 2023.

No one knows how true it is, but Obidients are currently on Twitter talking about it. 

The implementation of the 7.5 percent Value Added Tax ( VAT) rate under the new Finance Act has commenced since February 1, 2020. The VAT increase to 7.5percent is one of the few changes made to the country’s 2019 Finance Act to help the Federal Government raise additional revenues to meet its 2020 budget targets.

The Federal Government’s share of the VAT pool is 15percent, while the balance goes to the 36 states. Currently, some states are in need of the additional revenue to be able to meet the obligations of the minimum wage.

The Minister of Finance, Budget and National Planning, Mrs Zainab Usman, disclosed in Abuja that the implementation of Value Added Tax (VAT) new rate of 7.5 per cent will commence on February 1, 2020, after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice.

VAT was increased from 5 per cent to 7.5 per cent in government’s bid to boost revenue which is badly needed to close the deficit gap in the 2020 budget.