The Federal Executive Council (FEC) has approved an increase in value added tax (VAT) rate from 5% to 7.2%.
Zaina Ahmed, Minister of Finance, Budget and National Planning, disclosed this to state house correspondents at the end of the cabinet meeting on Wednesday.
However, this is subject to an amendment of the VAT act of 1994 by the National Assembly. If approved by the Federal Lawmakers, the new rate will take effect in 2020.
