In line with the recent amendment of the Finance Act, 2023, the Federal Inland Revenue Service (FIRS) has issued a public notice to inform taxpayers, tax practitioners, and the general public of the commencement of its implementation. As highlighted in the notice, the implementation will affect Value Added Tax (VAT).
The FIRS is enjoined to implement the amended Finance Act, 2023, which was recently signed into law by President Muhammadu Buhari. The service urges all concerned individuals and entities to take note of the amendment, as the decision to collect VAT at a rate of 7.5% instead of the previous 5% will take effect immediately.
This amendment aligns with the government’s aim to increase the country’s revenue base and enhance economic growth and development. Nigerians have been urged to cooperate with tax authorities as they strive to implement this amendment in the most efficient and effective manner.
In a bid to increase the level of awareness and understanding of tax laws among Nigerians, the FIRS has promised to continue its aggressive taxation reforms and engage stakeholders in relevant consultations to ensure everyone’s compliance with the tax laws.
It is noteworthy that Nigeria joins several other nations globally in adopting a value-added tax system. The collection of VAT is crucial to any economy as it aids in the generation of revenue for the government. Additionally, it ensures that businesses function properly, particularly small and medium-sized enterprises.
In conclusion, the FIRS has commenced the implementation of the amended Finance Act, 2023. As taxpayers, tax practitioners, and the general public, it is our collective responsibility to comply with the new amendment and ensure the continued growth and development of our economy.
