VAT: Finance Minister Overrules AGF, Says Implementation Starts February

By Ayodele Oluwafemi

The implementation of the 7.5 per cent Value Added Tax contained in the new Finance Act will take effect by February 1st, 2020, the Federal Government has announced.

The minister of finance,  Zainab Ahmed, confirmed the development, on Thursday,  in Abuja at the inauguration of the board of the Federal Inland Revenue Service.

Ahmed noted that the 7.5 per cent Value Added Tax will take effect after all the necessary administrative procedures must have been completed, especially the gazette of the Act by the Federal Ministry of Justice.

According to her,  the February 1 commencement date had put to rest every speculation regarding the take-off date of the new VAT regime, noting that administrative procedures and formalities to be finalised before commencement.

She disclosed that there would be more revenue to finance key government projects especially in the areas of health, education and critical infrastructure.

In her words: “The implementation of the Value Added Tax is to take effect from February 1, 2020, after all the necessary administrative procedures have been completed, especially the gazette of the Act by the Federal Ministry of Justice.”

Meanwhile, the Minister’s statement contradicts the claim by the Accountant General of the Federal, Ahmed Idris, who said the new VAT increment took effect from January 13 when the 2020 Finance Act was signed.

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