Following the 2.5 per cent increase in Value Added Tax (VAT) which will come into effect as from February 1, the Senate has assured Nigerians that the implementation will not affect the purchasing power of an average Nigerian. The Senate added that the increment was targeted at luxury items which the ordinary Nigerian does not use.
According to the President of the Senate, Ahmad Lawan, who gave the assurance on Monday, “The 2. 5 per cent increment in VAT does not include items that ordinary Nigerians normally use." He further stated that, “Many of the items that would now have additional 2.5 per cent increment are luxury items that ordinary Nigerians don’t use.”
Lawan explained that the move was decided upon by the Senate owing to increasing demand for additional resources to provide basic social amenities that an average Nigerian required.
Meanwhile, he revealed that his deputy, Ovie Omo-Agege, has been named chairman of the Senate Committee on Constitution Review which will be constituted this week.