• Thursday, December 12, 2024
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BusinessDay

Nigerians have nothing to fear about proposed VAT increase. Here’s why 

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(The table above is adapted from Taiwo Oyedele, LinkedIn, 2024.)

There’s been palpable concern in Nigeria that the government's proposed Value Added Tax (VAT) increase could push prices higher and make life harder for everyday Nigerians. On the surface, this worry makes sense. After all, when VAT goes up, businesses often pass the cost on to consumers, leading to price hikes. But experts are saying this time, the situation is different. To understand why, we need to look at the full picture, not just the VAT increase. "The proposed reforms are part of a broader strategy designed to lower costs for cons