I Will Raise VAT Registration Threshold to N25m, Buhari Promises Nigerians
President Muhammadu Buhari has promised to raise the threshold for VAT registration to N25m turnover per annum, to bring relief to small(est) businesses.
The president made the promise during the ongoing 2020 budget presentation on the floor of the National Assembly.
He further stated that the budget was based on the proposed Increase of VAT from 5% to 7.5%.
According to the president, the increased revenues will be used to fund education, health, and infrastructure. He pointed out that the VAT Act already exempts Pharma, Educational items and basic commodities. He also promised to expand the exemptions.
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While noting that Nigeria’s Gross Domestic Product (GDP) has grown from 1.93 percent in 2018 to 2.02 percent in the first half of 2019, Buhari said inflation reduced from peak of 18% in Jan 2017 to 11% by August 2019 and External reserves up from $23bn in October 2016 to $42bn in Sept 2019.
Speaking on capital importation, the president revealed that it was up from $12bn in H1 2018 to $14bn in H1 2019.
According to him, the 2018 capital budget was implemented till June 2019 and that N294.6 billion was released for capital projects under 2019 budget, as of Sept 30, 2019.
“I have directed the Federal Ministry of Finance to release additional N600 billion for capital by end of 2019.”
While putting the benchmark Oil Price at $57 Production: 2.18m bpd FX: N305/$, he said N8.155 trillion in revenues is estimated in 2020 budget, as Oil sector will rake in N2.64 trillion; Non-oil sector: N1.81 trillion while others are expected to rake in N3.7 trillion.
