SimonKolawolelive By Simon-Kolawole, Email: simon.kolawole@thisdaylive.com, sms: 0805 500 1961
Already, Nigerian manufacturers are nervous over the new VAT rate. I heared that Guinness, one of the biggest producers of consumer products, is considering increasing its prices, although Mr Baker Magunda, the MD/CEO, gave nothing away when he spoke recently. “We do not arbitrarily increase prices,” he said. “In fact, we have maintained price stability even in the most challenging times.
However, it seems government strategy is to increase both the rate and the take at the same time. In truth, a lot of work has been done in the last three years to increase the tax base but how far can we stretch collection in an economy that is walking on thin ice? That is the challenge for Mr Mohammed Nami, the new FIRS boss. People and businesses must make money first before you can tax them well. Economic prosperity will make it easier.
It should also interest you that the N50 stamp duty that started as a squatter on your bank account in 2016 has now become a landlord. Basically, all bank transfers from N10,000 will now be charged stamp duty, even when you are transferring the money to yourself in another bank. The only exemption is if you are transferring money to yourself in the same bank.