"Nigerian Government Moves to Slash Food Taxes, Plans VAT Increase"

The Nigerian Government has made a bold move to alleviate the financial burden on the country’s poorest citizens by targeting zero-rated tax on food items. The decision was made public by the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, Taiwo Oyedele, during an interview with Channels Television.

The committee’s chairman emphasized the need to ease the pressure placed by the Value Added Tax (VAT) on the country’s poorest people. He explained that the current system was imposing too much of a burden, even on food items that were initially exempt. "We’ve decided that food should not just be exempted, it should be zero rated," Oyedele stated.

In a surprising twist, Oyedele also announced that the committee is planning to propose a law that would increase the VAT rate from 7.5 percent to 10 percent. This move has raised concerns among citizens, who are already reeling from a recent hike in the price of Premium Motor Spirit (Petrol). The Nigerian National Petroleum Company Limited increased the pump price of Petrol to N897 and N855 per liter, up from N617, on Tuesday.

The move to zero-rate food taxes is seen as a crucial step in easing the financial burden on Nigeria’s poor. The decision is likely to have a significant impact on the lives of ordinary citizens, who often struggle to make ends meet in a country plagued by high inflation and unemployment.

While the increase in VAT has raised concerns, the Nigerian Government is optimistic that the move will lead to a more stable tax system. The committee is expected to present its proposals to the government soon, and a final decision on the matter is expected to be made in the coming weeks.

In the meantime, Nigerians are left wondering what this means for their daily lives. Will the zero-rating of food taxes lead to a significant decrease in their expenses? And what implications will the proposed increase in VAT have on the economy? Only time will tell.